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'''Strategic service management''' ('''SSM''') is a [[business strategy]] that aims to optimize the post-sales service that a company provides, by synchronizing service parts and resources forecasting, service partners, workforce technicians, and service pricing. Benefits of strategic service management can include:<ref>[https://web.archive.org/web/20100102100008/http://aberdeen.com/summary/report/benchmark/RA_IndustryTraction_MV_2498.asp AberdeenGroup's Industry Traction of Strategic Service Management], December 2005, archived 2 January 2010</ref> |
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== Strategic Service Management (SSM) == |
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*Increased revenue through the servicing of manufactured products that may be experiencing decreased sales |
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*Increased [[customer loyalty]] through improved post-sale service performance |
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*Heightened asset accountability and tracking |
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*More knowledgeable workers to prevent common mistakes |
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Using strategic service management, [[Avaya]] reduced service parts inventory from $250 million to $160 million, [[Sun Microsystems]] saved $40 million in the first year, and [[Dell]] grew service revenues over 20% in one year.<ref>{{cite news|url=http://www.businessweek.com/stories/2005-07-31/yes-maam-that-part-is-in-stock|archive-url=https://web.archive.org/web/20140828155513/http://www.businessweek.com/stories/2005-07-31/yes-maam-that-part-is-in-stock|url-status=dead|archive-date=August 28, 2014|title=Yes Ma’am That Part Is In Stock|publisher=[[BusinessWeek]]|date=August 1, 2005}}</ref> |
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Strategic Service Management, SSM, is a new customer commitment-centric business strategy that optimizes a company’s service business processes through a single, integrated view of post-sale service operations, by taking into consideration the planning and forecasting of service resources, and the strategy and management of customer commitments, service partners, and service pricing. |
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== See also == |
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== Reason for Strategic Service Management<sup>1</sup> == |
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* [[Command center]] |
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* [[Field service management]] |
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* [[Service parts pricing]] |
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* [[Spare parts management]] |
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* [[Workforce management]] |
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== References == |
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*Products have become commoditized and product-based [[profit margin]]s have decreased over time therefore companies are looking for new sources of [[revenue]] |
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{{Reflist}} |
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*Companies are looking to differentiate themselves from the competition and a best in class service organization can definitely lead to [[customer loyalty]] |
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*Customers are expecting faster resolution time when they place a service call |
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*Asset management responsibility and accountability are shifting from the enduser |
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enterprise to OEMs and their service provider partners |
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[[Category:Strategic management]] |
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== Best Practices<sup>2</sup> == |
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# Bring [[Field Service Management]] and parts logistics under one operational umbrella; |
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# Leverage existing and new technology solutions to synchronize four service pillars; |
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# Address process deficiencies before deploying technology; |
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# Define requirements and success criteria clearly before evaluating technology solutions; |
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# Leverage partnerships with service and logistics providers; |
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# Attack [[aftermarket]] service as a top-line business opportunity; |
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# Involve stakeholders early and often in transformational process; |
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# Adopt a two-pronged approach to measuring the efficacy of after-market service:operational and strategic; |
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# Adopt an enterprise-wide perspective; and |
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# Invest more energy in [[forecasting]] and planning technician capacity and work order |
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demand. |
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== Results from Strategic Service Management deployments<sup>3</sup> == |
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* [[Avaya]] reduced Service parts inventory from $250 million to $160 million |
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* [[Sun Microsystems]] saved $40 million in the first year |
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* [[Dell]] grew service revenues over 20% in one year |
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== Further Reading == |
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AberdeenGroup’s Best Practices in Strategic Service Management Report (http://www.aberdeen.com/summary/report/benchmark/RA_PSSRpt_MV.asp) , June 2005 |
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AberdeenGroup’s Industry Traction of Strategic Service Management (http://www.aberdeen.com/summary/report/benchmark/RA_IndustryTraction_MV_2498.asp), December 2005 |
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== Footnotes == |
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1.AberdeenGroup’s Industry Traction of Strategic Service Management (http://www.aberdeen.com/summary/report/benchmark/RA_IndustryTraction_MV_2498.asp), December 2005 |
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2. AberdeenGroup’s Best Practices in Strategic Service Management Report (http://www.aberdeen.com/summary/report/benchmark/RA_PSSRpt_MV.asp) , June 2005 |
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3. Yes Ma’am That Part Is In Stock, BusinessWeek, August 1, 2005 |
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{{Uncategorized|date=June 2007}} |
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Latest revision as of 06:54, 3 April 2023
Strategic service management (SSM) is a business strategy that aims to optimize the post-sales service that a company provides, by synchronizing service parts and resources forecasting, service partners, workforce technicians, and service pricing. Benefits of strategic service management can include:[1]
- Increased revenue through the servicing of manufactured products that may be experiencing decreased sales
- Increased customer loyalty through improved post-sale service performance
- Heightened asset accountability and tracking
- Increased worker productivity
- More knowledgeable workers to prevent common mistakes
Using strategic service management, Avaya reduced service parts inventory from $250 million to $160 million, Sun Microsystems saved $40 million in the first year, and Dell grew service revenues over 20% in one year.[2]
See also
[edit]- Command center
- Field service management
- Service parts pricing
- Spare parts management
- Workforce management
References
[edit]- ^ AberdeenGroup's Industry Traction of Strategic Service Management, December 2005, archived 2 January 2010
- ^ "Yes Ma'am That Part Is In Stock". BusinessWeek. August 1, 2005. Archived from the original on August 28, 2014.