We have seen a major surge of interest in warranty management and warranty analytics software among manufacturing organizations. Especially in this uncertain economy, the need to reduce costs, improve product quality, differentiate service, optimize service revenue, and retain customers is paramount for these companies.
IDC Manufacturing Insights publishes IDC MarketScape reports that utilize a rigorous research methodology to examine the capabilities and strategies of the key vendors in a given market. This video will briefly discuss key research findings from two such reports, focused on the warranty transaction management and warranty analytics markets. In addition, it will provide important guidance to product companies seeking to invest in warranty applications.
Warranty transaction management systems are at the epicenter of customer interactions in the service world. Beyond processing claims, these applications are being called upon to help reduce inefficiencies and financial liability resulting from inadequate warranty management. Warranty management software should have basic functionality for managing warranty, policies, registrations, claims, campaigns and product returns.
A more advanced system will also include out-of-the-box functionality that accelerates user time-to-value, such as industry or role-specific report templates, and predefined business rules that can be activated or deactivated. But these capabilities must be coupled with system flexibility. In order to keep pace with the changing business environment business users need the ability to customize workflows, reports and warranty policies through user-friendly interfaces without IT involvement.
Warranty analytics are a key complement to transaction management systems. Warranty analytics provide a pivotal piece of business intelligence, because they bring heightened visibility into product quality and field product performance. This software also eliminates the cumbersome and often unrepeatable investigation associated with complex, multidisciplinary data sets. Effective warranty analytic applications aggregate disparate data from a variety of independent sources, both structured and unstructured.
Typical data sources include warranty claims, service technician verbatims, and inspection reports. Data sources could also include public and social media. Warranty analytic applications can provide early identification of product quality issues, more accurate warranty accruals and reserves, as well as help companies optimize revenue streams from service contracts.
Vendor Profile: PTC
PTC, better known for its CAD modeling and PLM software, has recently focused its attention to expanding its capabilities in the area of Service Lifecycle Management. In late 2011, PTC acquired 4C Solutions, or 4CS. Now, PTC is one of the largest and most tenured players in the worldwide warranty management application market. PTC's warranty software implementations span across automotive, agriculture, construction, industrial machinery, A&D, high tech, and consumer products industries. The company offers a complete range of warranty and contract management solutions which encompass automated claims management, supplier recovery, service contracts and warranty analytics. As part of IDC’s MarketScape on Worldwide Warranty Transaction Management, we reviewed SIX key software providers. Based on scores in this research, PTC is the only warranty software provider positioned in the Leaders category.
Relative to other vendors in the group, PTC has strong product functionality, vision, and sales strategy. It’s acquisition of 4CS, provides it with a distinctive tenure and reputation in warranty. This combined with PTC's strategy and execution capabilities, fortifies its position.
PTCs warranty solution portfolio includes an integrated warranty analytics module. This module enables the aggregation of disparate data from a variety of structured and unstructured sources. The application is designed to accelerate product quality and financial analysis, as well as suspect claims identification.
As part of the IDC MarketScape on Worldwide Warranty Analytics, we examined nine key software providers. Based on PTC's scores in this rigorous research and analysis, the company is positioned in the Leaders category.
The Warranty and Contract Management Solution that PTC offers has a dynamic business rules engine. Within this are a large number of predefined business rules that can be activated for managing business process flow, transactions, and setting thresholds for suspect claims analysis. Users can additionally define their own rules. The application also includes a rich set of standard reports and templates that allow users to customize fields and formats. Business users can also segment and mine data, and create reports without the involvement of their IT counterparts. To complement the