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Strategic service management

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Strategic Service Management, SSM, is a business strategy that optimizes a company's provided services through the effort of synchronizing: service parts and resources forecasting, service partners, workforce technicians, and service pricing.

Benefits of Strategic Service Management1

  • Revenue opportunity through the servicing of manufactured products experiencing decreased sales
  • Leveraged customer loyalty through increased post-sale service performance
    • Faster resolution time for customer support service calls
  • Heightened asset accountability and tracking
  • Increased worker productivity
  • More knowledgeable workers to prevent common mistakes

Best practices2

  • Bring field service management and parts logistics under one operational umbrella
  • Address process deficiencies, clearly defining required improvements and success criteria, before evaluating technology solutions
  • Leverage partnerships with service and logistics providers
  • Prioritize aftermarket service as a top-line business opportunity
  • Involve stakeholders early and often in transformational process
  • Adopt a two-pronged approach to measure the efficacy of after-market services: operational and strategic
  • Ensure SSM strategy is integrated enterprise-wide
  • Shift focus towards forecasting and planning: technician capacity and work order demand

Results from Strategic Service Management deployments3

  • Avaya reduced Service parts inventory from $250 million to $160 million
  • Sun Microsystems saved $40 million in the first year
  • Dell grew service revenues over 20% in one year

See also


Footnotes

1. AberdeenGroup’s Industry Traction of Strategic Service Management, December 2005

2. AberdeenGroup’s Best Practices in Strategic Service Management Report , June 2005

3. Yes Ma’am That Part Is In Stock, BusinessWeek, August 1, 2005