Three Key Ingredients for Outcome-based Service Excellence...contracts, warranties and subscriptions...
Transcript of Three Key Ingredients for Outcome-based Service Excellence...contracts, warranties and subscriptions...
Table of contents
Introduction 2
Three key ingredients for outcome-based service excellence 4
A connected suite of applications 5 that span the service lifecycle
Unifiedfront-andback-officesystems, 7 processes,anddata
Serviceavailabilityanytime,anywhere, 8 onallcustomerchannels
A word about AI and machine learning 9
The future of Service: Always on, predictive service 10
Why choose Oracle for enterprise service management? 11
Let’s get started 11
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Three Key Ingredients for Outcome-based Service Excellence
Copyright©2021,Oracleand/oritsaffiliates|Public
There’samajorshifthappeningacrossmanufact-uring service organizations. While cost savings andoperationalefficienciesarestilltopbenefits,companiesaregeneratingnewrevenuefromserviceagents’up-selling/cross-sellingproductsandsubscriptions.Meanwhile,formanufacturers
pivotingtooutcome-centricor“product-as-a-service”businessmodels,fieldserviceisbecomingmoreremote,contactless,andintelligent—addingpressure on service organizations to adapt so theycancontinuetomeetcustomerneedsandexpectations.
• New business modelstoprotectandgrowinstallbaserevenuewhilereducingcustomercapitalexpenditure
• Digital-first experiencesthatallowyouto pivottolow-orno-touchservicesatalowercost
• Guided support toolstoquicklyrampupthe nextgenerationofmobileworkers
• Connected assets,remotetelemetryandInternet ofThings(IoT)monitoringtocapture,track andpredictivelyactonyourcustomers’behalf
• Platformsthatconsolidatebusinessfunctions anddeliveraseamlesscustomerexperience
Manufacturershavebegunincorporatinganenter-priseservicemanagementstrategyintotheir overalldigitaltransformation.Theyunderstandthatserviceneedstobeintegratedwithsales,
marketing,finance,supplychain,andoperations tobecometrulypredictiveandprescriptive.Inaddition,serviceleadersarerecognizingthe valueofusingconsolidateddatafromalllines ofbusinesstoreduceprocessfriction,capturepredictablerevenueanddeliverexceptionalcustomerexperiences.
Thisguidewillexaminethestrategiesandtechnologies service organizations are implementingastheypivottoneweconomicmodelsandpositiontheirbusinessesforlong-termgrowth.
Introduction
What are some key factors driving this change?
Evenbeforethepandemic,manufacturerswereclosely eyeing their service organization as a businessunitripefortransformation.Atthesametime,customerexpectationswerechanging,andbuyinghabitsshiftedtoward“as-a-service”orvalue-basedofferingswithreducedCapEx.Theconvergenceofthesethemespresentedamassiveopportunityformanufacturers:Shiftingservicefromacostcentertoapredictablerevenuegen-eratorwithincreasedcustomervalue.
Inlate2019,Gartnerpredictedthatoverhalfofallequipmentmanufacturerswouldadoptoutcome-basedservicecontractsinlessthanfiveyears[Gartner, The Future of Field Service, Dec. 2019] Butthistimelinewasdramaticallyescalated whentherealitiesofCOVIDhit.Almostinstantly, on-sitedeploymentsoffieldpersonnelwerehighlyrestrictedforequipmentanddevicemanufacturers.Fortunately,whenremoteorcontactlesssupportbecametheonlysafewaytoprovideservice,customersquicklyadapted.
The new normal: Digital first, predictive service
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Pushing past the COVID recovery phase, we’re seeing even greater urgency for and adoption of digital service transformation. Research and trends back this up:
45%ofmanufacturersaredefin- ingavisionfortransformation
49%areinvestinginAIandadvanced analytics to design proactivecustomerservice
75%willupdateoperatingmodelswithIoT
37% already have diagnostic capabilitiesconnected to the service organization
Spotlight: Service is evolving from reactive to proactive
Digital transformation in service allows you to predict customer needs and automate service delivery, eliminating downtime and maximizing the value you create for your customers.
The chart above illustrates the evolution we see with many service organizations.
• Manymanufacturerserviceorgan-izations are still delivering service withabreak/fixorreactivemodelthatrequirescustomerstoidentifyandreportissues.Thisslowscust-omerproductivityandincreases
servicecosts.Andevenwhentechnologies are in place to capture servicerequests,schedulefieldserviceevents,andmanagerelatedinventory,theyareoftendiscon-nectedandplaguedbydataincon-sistencies.
• Otherserviceorganizationshavegraduated to an integrated suite ofapplicationsfrommultiplevendorstotakeamorepreventativeapproach.Andwhilethisimprovescustomerexperience,itcanalsocreateprocessfriction,inefficien-cies,andhigherservicecosts.
• However,agrowingnumberofmanufacturingserviceorganiza-tionsareembracingafullyunified,
end-to-endapproachtomanagingtheservicelifecycle—reaching theoptimalstateofpredictingandproactively addressing service disruptionsbeforetheyoccur.They’vedeployedcapabilitiessuchasartificiallyintelligentcustomerportalsandknowledgelibrariestotriggernext-bestactionsthathelpcustomersbecomebetterusers oftheirtechnology.Andsomemanufacturershaveprioritizedintegratingtheirsalesandmarket-ingsystemswithservicetodeliverrelevantcustomeroffersduringserviceappointmentsandprovidefieldtechnicianswithguidance andtoolstocompletenewsalesorcontractrenewalsduringtheiron-siteservice.
• Supporting service evolution of this magnitudewillrequireachange inorganizationalmindset.Butwebelievemanufacturersareatacriticalpointthatjustifiesthetransformation.Keyforcessuchasthegenerationalworkforceshift,theemergenceofnext-generationtechnicalcapabilities,andcustomerbuyingpreferencesupendingeconomicmodelsareconvergingand forcing the issue.
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Reactive
SlowDisruptiveDisconnected
Preventative
BasicIne�cientCostly
Predictive
IntelligentAutomatedFrictionless
Revenue
Bespoke applications
Integrated suites
Uni�ed front- andback-o�ce
“Although the specter of disruption has been front and center in 2020, we do not believe that invalidates the manufacturing transformation journey that so many companies are pursuing—in fact, we think it justifies and accelerates it.”
Manufacturersfullyrecognizethatthesignificantshiftsinthecustomerrelationshipareacceleratingdigitaltransformationinitiativestomeetthemomentand prepare for the future.
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Three key ingredients for outcome-based service excellence
Tocapturepredictableservicerevenue,driverenewals,andexpandcustomerloyalty,organizations recognizetheneedforanenterpriseservicesolution.Basedonourexperienceworkingwithcustomers,we’vefoundthesethreekeyingredientsarecriticalfordeliveringserviceexcellence:
We’llexploreeachoftheseareasinmoredetail inthefollowingsections.Asaserviceleader,you’llquicklynotethatthisisnotanexhaustivelistofwhat’sneededtoexcelinanoutcome-centricmodel.Forexample,wewon’tcoverhowtoembedsmarttechnologyrequiredforIoTmonitoringororgan- iza-tionaldesignchangestosupportnewbusinessmodels.Instead,we’llfocusonthetechnologies,capabilities,andstrategiesthatwillhelpyoudeliverthebestpossibleoutcomesforyourcustomersandyourbusiness.
Seamless unification of customer, asset, process and
workflow data
Availability anytime, anywhere, on all
customer channels
A connected suite of capabilities that span the
service lifecycle
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Historically,onceasalewascomplete,servicewasthekeytodrivingcontinuedcustomersatisfaction,loyalty,andbrandadvocacy.Butformanufact- urerspivotingto“product-as-a-service”business models,serviceisnowalsocriticaltofinancialsuccess,specificallyrenewalsandupselling.
Tomeetcustomerdemandswhileincreasingshareholdervalue,outcome-centricserviceorganizationsneedtoequiptheirteamswithafullrangeofconnectedsalesandsupportcapabilities.Moreover,inourdigital-firstworld,anomni-channel approach ensures that your agents can handlecustomerinquiries,issues,andnew salesopportunitiesquicklyandefficientlywhiledelightingcustomersateverystep.
These capabilities include: (see diagram)
• Servicerequestsandcasemanagement
• Contracts,warranties,subscriptionmanagement
• Field service planning and execution
• Service inventory and logistics
• Digitalpromotionsandordermanagement
• Billingandpaymentmanagement
Billing and payment management
Determine billable items
Determine warranty coverage o�sets
Generate invoice
Digital promotion andorder management
Install base sales and marketing execution
Digital commerce portal
Con�gure, price,quote and book
Solutions
Subscriptions
Parts
Contracts
Contract, warranty and subscription management
Manage product coverage
Ensure contract compliance
Capture and manage warranty claims
Service request and case management
Field service planning and execution management
Manage, schedule, route andoptimize your �eld service workforce
Manage and execute complexprojects and installations
Optimize partner resources
Service inventory and logistics management
Optimize resource alignment
Returns, advanced exchange and claims
Manage repair depot operations
Manage service cost, claims, returns se�lement
Manage service partners
Manage activities, service requests, work orders and cases
Manage service parts
Manage returns logistics and disposition
A connected suite of capabilities that span the service lifecycle
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Capabilities overview
• Service request and case management managesservicerequests,workorders,andcases.Whenunifiedwiththerestoftheservicelifecycle,serviceagentscanquicklyandefficientlyresolveissueswithfullvisibilitytoalltouchpointsofacustomer’sservicejourney.Digitaltools,suchasself-service,chatbots,andvirtualassistants,deflectminorserviceissues soagentscanfocusonspecific,high-valuecustomerinteractions.Additionally,embedded AIcapabilitiesincreasethespeedofresolutionsthroughpatterndetectionandbysurfacingrecommendedactions.
• Contract, warranty, and subscription management managesproductcoverage,confirmscontractcompliance,andcapturesandmanageswarrantyclaims.Customersatisfactionincreasesbecausepartners,employees,and evencustomersthemselvescanvalidatewarrantycoverageandentitlementsbeforeservicehas tohappen.Paymentsarecapturedforservicesprovided.BusinessescandrivenewrevenuestreamswithAI-poweredrecommendationsforselling,delivering,andrenewingcontract-basedofferingsandsubscriptions.Toolsthatintel-ligentlyprocesswarrantyclaimsoffergreaterefficiencyandfocusresourcesonclaimswith ahigherlikelihoodoffraud-reducingrevenueleakage,optimizingwarrantyreserves,andimprovingsupplierrecovery.
• Field service planning and executionautomateshowyoumanage,schedule,route,andoptimizeyourmobileworkforce,aswellasmakethebestuseofpartnerresources.Withrobustmobilitytools,fieldtechnicianscanresolveissuesquicklyandintelligentlyupsell,cross-sell,andrenewsubscriptions.Yourdispatchorserviceteamleadersalsobenefitfromareal-timeviewoftheir techniciansinthefieldandcanefficientlyhandleunplannedoremergencywork.Thisservicecomponentshouldalsoconnecttoyoursupplychaintoensureallneededpartsareinstockatthe right locations and on technicians’ vehicles.
• Service inventory and logistics management capturesservicecostsandmanagesserviceparts,returnslogistics,disposition,andrepairdepotoperations.Withthisfunctionality,businessescaneasilycheckpartavailabilityandorderserviceparts,allfromwithinaServiceRequest.Theycanalsomanagetechniciantruckinventorylevels toverifythecorrectpartsarealwaysavailable.What’smore,leveragingIoTandAIallowsservicerepstopivotawayfromreactiverepairstoproactivemaintenance.
• Digital promotions and order management includessalesandmarketingexecutionto currentcustomers,adigitalcommerceportal, andconfigure-price-quotesolutionstosupport subscriptions,parts,andcontracts.Tools inthiscategorysavecustomers,partners,andemployeestimesincetheycanusedigitalchannelstoautomatepurchases,facilitaterepeatorders,checkorderstatuses,initiatereturns, andcheckavailableinventory.Atypicalorderplatformcaptures,configures,prices,andchecksavailabilityacrossallchannelsandprovidesvariousfulfillmentoptions,includingdirectship,same-daypickup,same-daydeliverytoajobsite,orpickupfromachannelpartner.
• Billing and payment management identifiesbillableitems,determineswarrantycoverage offsets,andgeneratesinvoices.Organizationsreduceerrorsanddayssalesoutstanding(DSO)byconsumingpro-formainvoicesfromserviceoperationsandvalidatingagainstcontracts, warranty,subscription,regulations,revenue recognitionguidelines,andtaxlawstogenerateandissueafullcommercialinvoice.Asingleplatformsupportsbillingprocessesforacompany’smixedofferingsofproducts,services,andsubscriptions.Finally,real-timeinsightsmeasuretheperformanceofgoalsandrenewalrates.
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Whencustomersbuyproductsorneedsupport,theyexpectacohesiveexperience.Tomeetandexceedthisexpectation,servicemustbeembeddedineverythingyourcompanydoes.Thismeanstheentire organization needs to continuously consider howeachroleandfunctionimpactstheserviceexperienceandthecustomerrelationship.Theillustrationbelowshowshowmanytouchpointsandfunctionsneedtostayinsynctoensureaseamlesstransferofdatabetweenthem.
Toavoidfrustratingcustomersandexacerbatingfrictioninsideyourbusiness,manufacturersshouldseektobreakdownthewallsbetweenthefrontofficeandbackofficeateachstepintheservicelifecycle.Wefindthattakingahardlookat yourdata—howit’smanagedandsharedacross theorganization—islikelythemostcriticalsteptosuccessfulbusinesstransformation.
Whenserviceoperationsaretiedtoaglobaldatamanagementstrategy,itbecomesmucheasier toshiftfromreactivetoproactive,automatingprocessesandempoweringcustomerswithmoderndigital experiences.
It’salsoimportanttoachieveaholisticviewofcustomersbycombiningtheirdatafromallsystemsintoasinglecustomerprofile.Thisfocusedcustomerdatamanagementstrategyallowsyouto:
1. Consolidate/centralizedatainonelocation— allaccounts,contacts,activities,leads,oppor-tunities,quotes,assets,andothercustomer-related data in one place
2. Ensureclean,accuratedataacrossprocesses,workflowsandapplications
3. Surfacecompletedatawhenandwhereit’sneededbyautomaticallyenrichingandextend-ingyourfirst-partycustomerdatawiththird-party data
4. Reduceprocessfrictionandimproveoperationalefficiencybycoordinatingwhatyouknowaboutyourcustomer—todelivera360-degreeview ofcustomersacrossmarketing,sales,service,CPQ,commerce,andERP
Proactive IoT Asset Monitoring
Knowledge Library
Field Service Maintenance,
Repair and Advice
Con�gure, Price and Quote
Seamless Invoicing
Manage Contract and Asset Lifecycle
Source and Order Parts
Customer Self-Service
Automated SR Logging
Why is digital service transformation so challenging?
Disconnected data and processes stand in the way
Unified front-and back-office systems, processes, and data
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Thefinalcomponentofserviceexcellenceisavailability.Whetheryourequire24/7uptimeorhavespecificbusinesshours,it’scriticalthatemployees,partners,andcustomershaveaccesstoservicewhenever theyneedit,onwhateverchanneltheyuse.Thismeanstakinginventoryofyourcurrentservicecapabilitiestoplanfortheeventualmigrationtoaholisticenterpriseservicemanagementsystem.
Here are some considerations for your strategy
Includecustomerdatamanagement(CDM)tocollectvarious customerinformationelementsintouniversalidentifiers,while retaining the original data sources
Includeprocessautomationtoprovidebusinesseswithactionable insightandrapiditerationsofbusinessprocessmodel
EmbedAIandmachinelearning(ML)intheplatformtodeliver easyinsight,detection,automation,andexpertguidance
IncorporateIoTfunctionalitytoalloworganizationstoconnect, analyze,integrate,andlearndirectlyfromtheirproducts
Offerknowledgemanagementtoolstoimproveself-service capabilitiesandspeedtimetoresolutionbyallowingcustomers andserviceagentstofindanswersquickly,anytime,anywhere
Providecollaborationtoolstohelpstakeholdersconvenequickly todeterminethebestsolutions
Service availability anytime, anywhere, on all customer channels
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A word about AI and machine learning
Applyingadvanceddatascienceandmachinelearningtoyourcompany’sdataallowsyoutoreact,learn, andadaptinrealtime.Italsogivesyoutherightinformation(fromhistoricalanddynamiccustomerdata, suchasclickstream,socialactivity,weather,look-alikeaudiences,IoT,andmore)todelivercustomizedinsightsacrossallofyourcustomer-facingactivitiesthatimprovewitheverycustomerinteraction.
The benefits reach across your organization.
1. Empower your marketing team
• Seewhencustomersreceivedmessages(andwhetherornottheyengaged)andusethatinformationtooptimizechannelandsendtime
• Separatemostactionablecustomerdataforintelligentmessagingthatconverts
• Determinethecontentofemailsatthetimeyourcustomeropensit,allowingyoutosendmorerelevantinformationandbuildlong-lastingrelationships
2. Connect the right audiences to campaigns for more personalized experiences optimize the selling process
• Offerguidancederivedfromopportunity analysisandaccountengagement
• Utilizesmartcallpoints
• Presenttherightofferand/ortakethenext-best salesaction—optimizedforeachcustomer
• Employleadscoringandlook-alikeaudiencemodels
3. Resolve customer issues faster (and smarter)
• Presentthenext-bestserviceactionin therightchannelattherighttime
• Deliverpredictiveproductfailure,predictive accounthealth,andpredictiverecommendations
• Utilizechatbot(andenhancedmobile,video, andsocialmessagingcapabilities)to provideautomatedanswersandinteractwith customersacrossavarietyofchannels
4. Deliver AI-powered digital commerce capabilities
• Providepersonalized,targetedproducts andcontentthatismostrelevanttoyour buyer’simmediateneeds
• Offersmartproductrecommendationsbased onaccountdata,third-partyshopperdata, andreal-timeinputs
• Includeintelligentsearchcapabilitiesthatcanunderstandcustomersandtheirrequirements
• Producecross-channelcontextual contentinrealtime
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The future of Service: Always on, predictive service
Ifthere’sonethingweknowaboutservice,whatworkstodaywon’tnecessarilyworktomorrow. Digitaltechnologies,media,content,anddatahavechangedboththecultureofserviceorganizationsandthedemandsofcustomers.Exceptionalservicehasbecometheexpectednorm,andwithitcomesthepowertoturnone-timecustomersintoloyaladvocatesforyourproducts,yourcompany,andyourbrand.
Digitalistheonlywaytomeetthesecontinuallychangingexpectationsforaround-the-clock
availability,real-timefulfillment,immediateaccesstoinformation,andpersonalized,proactiveservice—tonameafew.
Successfulorganizationswillbethosethatcansuccessfully execute their service strategy to transformtheiroperations.
Thetruthiscustomerexperience(CX)istheultimatebusinessdifferentiator.Organizationsthatelevateafter-salesserviceaspartoftheircustomerexperiencewillachieve:
Increasedservicecontractrenewals
Improvedsalesofmore aftermarketpartsandaccessories
Greaterincremental/upsell/cross-sellsales
Enhanced support for product-as-a-servicemodelsandrenewals
Increasedcustomerloyaltythanks totheirabilitytoproactivelyserve
theircustomersandimprove first-callresolutionsinthefield.
Greaterefficienciesandcostsavingsthroughbetter
managementofresources,inventory,andrepairdepots
Organizationsthatstayaheadofcustomerneedsandexpectationssetthemselvesupforsuccess.Andasharpcustomerfocus,deliveredthroughstate-of-the-artdigitaluserexperiences,enablesservicetoshiftfromacostcentertoaprofitable,revenuegeneratinglineofbusiness.
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Why choose Oracle for enterprise service management?
Serviceorganizationsareembracingdigitaltransformationtoincreaseefficiency,improvecustomerandemployeeexperiences,reduce costtoserve,andcapturenewpredictablerevenuestreams.
Whenitcomesdifferentiatingservice,onlyOracleprovidesacompleteplatformofcloudsolutionstosupporttheentireservicelifecycle.Youbenefit fromaseamlessconnectionacrossthefront-office,back-office,andthefieldensuringa360-degreeviewofcustomer,assetandprocessdatatoreducecosttoservewhileenablingproactiveserviceandmaintenanceacrossconnectedassets.Oraclehelpsyoucompletethedigitaltransformationonyourschedule,empoweringyourserviceorganizationtomakeeverycustomerinteractionmatter,whileprotectingandgrowingrevenue.
About Oracle Enterprise Service Management
Oracle’sEnterpriseServiceManagementsolutionprovidesmanufacturersaplatformtotransformtheiraftermarketserviceoperationsfromreactivetopredictivebyautomatingtheservicelifecycleandempoweringtheircustomerswithamoderndigitalexperience.Thisenablesmanufacturerstoshift tonewservicebusinessmodels,capturethenextwaveofrevenuegrowthandretaincustomersfor life.
Thesolutionprovidescriticalconnectionsbetweendata,workflows,assetsandserviceteamsincludingIoTmonitoringtodiagnoseproblems,self-healassets,ortriggerandmanageafieldserviceeventtoserviceinventoryandlogisticsmanagementtocontracts,warrantiesandsubscriptionstocommerce,quotingandsalesperformancemanagementtoenablefieldtechnicianstodriveadditionalrevenue.
Competitionistough.That’swhysomanycompaniesare elevatingtheirafter-salesserviceexperiencetostandout. Buttocreateanexceptionalexperience,youneedthe righttechnologyplatformtohelpyougetthere.Adigital, end-to-endsolutionthataddressesallserviceissues—effortlessforyourcustomerandunifiedforyourbrand.Startrealizingthebenefitsofloyalbrandambassadors,increasedupsellandcross-sellopportunities,anddecreasedcoststhroughimprovedefficiencieswithOracle.
Let’s get started
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