When it comes to manufacturer and OEM profitability, there are three challenges which constrain EBITA improvement:
- Reactive service models and the costly on-site visits they incite.
- Disorganized, out-of-date technical information that cause technicians to order the wrong parts.
- An aging technician workforce that limits service scalability.
At the same time, there is an increased focus on customer retention and satisfaction, especially in a time when customers are demanding outcome-based contracts to lower their total cost of ownership. You already know that poor service experiences have a negative impact on brand loyalty and customer satisfaction, but how do you overcome the perception that you, the OEM, is a merely a producer of goods instead of a strategic partner?
In order for manufacturers to drive unprecedented value for their customers and their organizations, many are transforming their entire service models using the Internet of Things (IoT). The IoT provides the foundation needed to deliver remote service: the practice of fixing product issues over the internet instead of on site.
How does remote service fit in?
Remote service enables you to resolve an issue before the customer even realizes there was one. Instead of addressing problems on site, technicians can do so remotely. This approach also enables your organization to continuously monitor equipment performance, identify anomalies, and even analyze operational trends to inform engineering teams.
What are the driving use cases and benefits for remote service adoption?
Here, incremental improvements are still the key motivator to adopting a remote service solution. Key factors include:
- Reducing truck roll expenses as well as costs associated with MTTR, FTFR, and SLA compliance penalties. By updating equipment software or applying software patches remotely instead of dispatching a technician to every asset, your service organization not only saves money and time but also minimizes disruptions to your customers’ businesses. A medical device manufacturer used remote service to execute more than 600 preventative actions, ensuring 14,000 patients received uninterrupted treatment.
- Optimizing asset utilization by rapidly resolving issues without needing to dispatch technicians. Customers in complex medical devices, for example, rely on asset uptime to deliver essential health services where downtime has a serious impact. Solving problems remotely has a positive impact way beyond the bottom line, and affects SLA compliance, and even compliance with strict government standards.
- Improving worker productivity by centralizing your most senior technicians and having them service multiple sites remotely. As your workforce ages, your experienced technicians can guide newer ones from one location, allowing you to be flexible while still providing great service expertise.
- Creating new business models and revenue streams by upselling remote service as part of performance-based or outcome-based contracts. When you can make your service arm more efficient by operating remotely, you have more control over equipment performance, and can monetize this performance - not just the equipment itself - over time.
- Enhance customers' experiences by reducing their downtime, servicing their equipment faster, and even anticipating issues before they happen. Imagine being able to call or email your customer and let them know that you detected an issue and have already taken care of it instead of obligating customers to call in issues themselves.
Your customers want and expect service that mirrors the expectations they have in their daily lives, and that level of service is more possible than ever thanks to the IoT. A remote service solution is only the beginning. Check out the webinar below to learn more about how remote service can fit into your operations: