Business as usual no longer applies to the service business in manufacturing. Service organizations are being increasingly relied upon to drive revenues and profits, with after-sales services responsible for margin growth. Beyond being asked to generate larger portions of revenue, the service business must adapt to evolving customer demands around uptime, availability, and speed-of-service. In a recent Salesforce survey, 66% of executives recognize service departments are revenue generators, and 74% agree that within the next 10 years, services such as data and maintenance will be the primary revenue drivers of their business.
The nexus of these expectations presents a tremendous opportunity for service leaders – the opportunity for service model transformation, enabled by the Internet of Things. The journey to service transformation is about more than changing how service currently operates. Service transformation includes changing how service leaders think about their organization as a business unit in terms of outcomes, not merely solutions. This puts service leaders in line with their customers, who are more results oriented than ever.
Transforming a business unit is a complex process and one that must address each business’ service model, maturity, and manufacturing complexity. Manufacturers must build their strategy based on current challenges and potential opportunities for their service evolution. PTC’s three-tier framework for evaluating and implementing a service transformation journey begins with Understand.
The Understand stage is about making smarter decisions by analyzing service and product data in real-time. Beginning with connecting assets to monitor performance and providing comprehensive digital service and parts information, service leaders can start the journey on the on-ramp.
Top-ten Components of Understand:
Role-based views of enterprise data, efficiently combining data from multiple systems
Shorter search times for customers and technicians looking for part information
Faster service brought on by on by more efficient processes
Moving into real-time product data monitoring, getting closer to customer needs
Anticipating asset downtime
Reducing time to service issue resolution
Access to up-to-date parts catalogs and service information
Seamless part identification and ordering, reducing errors
Higher first-time fix rates
Increased service parts revenue
Visibility into service and product data in real time allows manufacturers to make smarter decisions. Learn more about PTC’s framework for service transformation in our latest white paper, and see how manufacturers like Varian Medical Systems and Lincoln Electric began their service transformation journey with great results.
Want to know where your service organization stands in the transformation journey? Take our service performance assessment to find out, and get additional insights and recommendations.