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Automation
of Service Business Delivers Competitive Advantage
AMR Research recently released a study entitled “Service Lifecycle
Management: Building a Roadmap for SLM Investments,” second
in a series of three dedicated to outlining the key components of
a successful service business growth strategy.
The report includes findings based on surveys with more than 125
companies across a variety of industries, including Aerospace and
Defense (A&D), high-tech, and automotive on how they are supporting
their service business through the automation of key processes,
maximizing the revenue opportunity with each customer, while decreasing
costs and increasing operational efficiency.
In addition, the report identifies the leading challenges that
can undermine a successful Service Lifecycle Management (SLM) strategy,
while providing a roadmap on how to achieve an effective SLM strategy.
“Most manufacturing companies invest in the product first
because it is what the customer buys, so the service organizations
have to make do with what is left,” said Marc McCluskey, research
director at AMR Research and author of the report. “As competition
for the lucrative service business continues to heat up and corporate
expectations increase, executives at leading service companies will
realize that they must adopt SLM technologies to adapt to client
needs and maximize their revenue potential.”
Key Findings
Overall, the AMR Research study links higher levels of automation
with significantly increased levels of productivity and better performance
in the market overall when benchmarked against competitors.
- Survey results reveal that only ten percent of companies have
achieved the highest level of automation, based on criteria set
forth in the report, with the remaining 90 percent not taking advantage
of a huge revenue growth opportunity.
- The report concludes that 65 percent of businesses surveyed have
not automated to support SLM, and are twice as likely to lose customers
than SLM leaders. As a result, survey respondents in the SLM laggard
category indicate that they are more likely to have lower market
share with their service businesses than SLM leaders.
- A successful SLM strategy is incumbent on C-level commitment
and involvement, with a focus on reducing costs at the operational
level and maximizing existing customer revenue and share at the
executive level.
- The study indicates that most companies are automating business
processes that revolve around product configuration management information
and their customers. The product information, along with data about
what their customers have installed, is the foundation from which
more advanced service offerings or cross-selling campaigns can be
employed.
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Products & Services 
