Transforming Service Organizations


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Service organizations at manufacturing companies are rapidly evolving This survey focuses on 112 executives from a wide range of industries, including automotive, computing, consumer electronics and high tech.

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Transforming Service Organizations

  1. 1. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL1TransformingServiceOrganizations
  2. 2. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL2Transforming ServiceOrganizationsHIGHLIGHTSService organizations at manufacturingcompanies are rapidly evolving This surveyfocuses on 112 executives from a wide rangeof industries, including automotive, computing,consumer electronics and high tech.This white paper charts how service organizationscan transform themselves into a next generationoperation, undergoing a metamorphosis fromcost center to profit center.
  3. 3. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL3Survey Overview There were 112 respondents Respondents from industries such asautomotive, computing, consumerelectronics and high tech The respondents came from all levels ofthe organization, from company chairmanto field technicians Among the respondents, approximatelyhalf (49.1 percent) worked for companieswith annual revenues lower than $3 billion Almost 20 percent (17.9 percent) workedfor enterprises with annual revenuesgreater than $20 billion
  4. 4. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL4Key FindingsKey Finding No. 1 Key Finding No. 2Service organizations areevolvingCompanies expect theirservice operations toimprove their relationshipwith their customers.Service operations caneven serve as a companydifferentiator.Service organizations aregoing to have to do a betterjob of analyzing customerinformation.Remote monitoring will playa bigger part in serviceorganizations over timebecause it is a sure way toreduce cost.Technology will changehow service organizationsact and reactBefore long, the head of theservices business willreport to the CEOKey Finding No. 5Key Finding No. 3Key Finding No. 4 Key Finding No. 6
  5. 5. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL5Key Findings
  6. 6. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL61. Service Organizations are EvolvingTraditionalHistorically, serviceorganizations wereproduct-centric costcenters set up in silosaround product linesHave move beyond Excelspreadsheets & want tostandardize theirprocesses and buildservices functionality.Management, however,still remains in silosGoes beyond the break/fixmentality and re-imaginesthe work “as a servicesbusiness. It creates itsown independent profit-and-loss statementEvolvingNext Generation
  7. 7. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL72. Service Operations Can be a Differentiator9.8%16.1%16.1%52.7%5.4%Service is required just to support the existingproductsService is a source of additional revenueService should be done at the lowest possible costwhile maintaining an acceptable service levelService is a critical tool for retaining customer andservice is considered an differentiator for theproduct salesOthersKey Outcome Expected from the Service Organization52.7 percent of the respondents, said service is a key tool for bothoptions. “It is a critical differentiator”
  8. 8. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL83. Better Analysis of Customer InformationWaysAnalyticsCan HelpAssetPrognosticsResourceOptimizationRevenueUpsidesDesignOptimization
  9. 9. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL94. Remote Monitoring to Play a Bigger RoleSivakumar NatarajanPractice Head, Service Lifecycle Management, Manufacturing& Hi-Tech Business Unit, Wipro TechnologiesUnderstanding & then acting onusage behavior moves a serviceorganization from the break/fixmentality to helping the customerachieve its strategic goals. Thischange of thinking creates businessoptions.Remote machine monitoring is agreat way to start moving to anext gen operation especially forB2B manufacturers that havebeen struggling to build realcustomer intimacy.
  10. 10. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL105. Tech. Will Change Service OrganizationsANALYTICSCLOUD Manufacturing customers will buy services from the manufacturer through the cloud. Manufacturers like construction equipment makers will start providing informationservices to their customers on their equipment informing them about utilization, operationparameters or alerting them to a misuse.Assemble theinformation in regardsto how the servicetechs currently usemobilityUse analytics &diagnostics to gaininsights from thatinformation to craft aplanWipro SuggestedFormula
  11. 11. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL116. Head of Services Business to Report CEO33.0%42.9%8.9%10.7%4.5%Leads Service in the Organization“C” level execSenior executive who report to a “C” execSingle mid-level executive who works in theoperation/sales departmentMultiple mid-level executives each with a distinctservice influence areaNo clear hierarchyWe expect the number of C-level executives to go up over the nextfew years
  12. 12. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL12Conclusion The survey found manufacturers expect theirservice operations to improve their relationships The survey demonstrated manufacturers have todo a better job of amalgamating the informationgleaned to present a clear view of true customerneeds. The survey underscored the reliance ontechnology to take the organization to a higherlevel. Finally, the results highlighted the growingimportance of the service operations. It predictedthe service organization leadership may soonreport to the CEO.
  13. 13. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL13For more details please visit the link below:
  14. 14. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL14Wipro set up the Council for Industry Research, comprised of domainand technology experts from the organization, to address the needs ofcustomers. It specifically surveys innovative strategies that will helpcustomers gain competitive advantage in the market. The Council, incollaboration with leading academic institutions and industry bodies,studies market trends to help equip organizations with insights tofacilitate their IT and business strategies.For more information on the Research Council or mail wipro.insights@wipro.comAbout Wipro Council for Industry Research
  15. 15. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL15About Wipro Ltd.Wipro Ltd. (NYSE:WIT) is a leading InformationTechnology, Consulting and Outsourcing companythat delivers solutions to enable its clients dobusiness better. Wipro delivers winning businessoutcomes through its deep industry experience anda 360 degree view of "Business throughTechnology"; helping clients create successful andadaptive businesses. A company recognizedglobally for its comprehensive portfolio of services,a practitioners approach to delivering innovationand an organization wide commitment tosustainability; Wipro has over 140,000 employeesand clients across 54 countries. For moreinformation, please visit
  16. 16. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL16Thank You©Wipro Limited, 2013. All rights reserved.For more information visit www.wipro.comNo part of this document may be reproduced inwhole or in part without the written permission of theauthors.Wipro is not liable for any business outcome basedon the views presented in this document. For specificimplementation clients should take advise from theirclient engagement manager.