achieving service profitability with mysapcrm service

7/29/2019 Achieving Service Profitability With MySAPCRM Service

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Achieving ServiceProfitability withmySAPCRM ServiceKen Osborn


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SAP AG 2003, 4.0 Infoday, K. Osborn, 2

Topics

Business Positioning ServiceOur CRM 4.0 Service Solution OfferingKey Takeaways


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Topics



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Budget

Revenue

Independent

Dependent

Strategic Line

of Business

Profit Center

Contribution

Center

Cost Center

Provides a service tosomeone else; does

not stand by itself

but in support of

another; runs

against a budget;

creates no revenue

Provides a service to

someone else; does

not stand by itself

but in support of

another; maygenerate a small

amount of profit

Managed

independently forthe purpose of a

business by itself;

has most or full

revenues

Run by an

executive, making

their own choices

and decisions

regarding the

abilities to best

support productsand generate

revenues and profits

directly from sales of

services

Source: Service Innovations, Inc.

Most Firms (75-90%)fall into this area today

To get here, firms

must become

customercentric&

integrate across

Dept Lines

Service is evolving as a Business


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Business Positioning - Service

mySAP CRM enables organizations to manage thecomplexities of operating a service business, helping

transform the service organization from a cost center into

a thriving service business by providing:

Strategic, long term and tactical service planning

Optimization capabilities that ensure the most efficient use

of resources

Pre-configured, role based service portals that provideservice managers and reps with all the information,

applications, and services they need

A complete service lifecycle solution that manages the entire

service process from initial contact through to final billing


6/38 SAP AG 2003, 4.0 Infoday, K. Osborn, 6

Topics

Business Positioning ServiceOur CRM 4.0 Service Solution OfferingService ManagementKey Takeaways



mySAP CRM Road Map

Complete operational

multi-channel CRM

Support ofconnected

customer-centric end-

to-end processes across themySAP.com e-Businessplatform

Leading CRM Analytics

INDUSTRY-SPECIFIC CRM

SAP CRM 3.0

People-Centric CRM -Ease of use through

preconfigured roles for

Service Managers, Service

Reps, Customers, Partners Functional

Enhancements Analytics

Extended Order Mgmt.

Mobile Solutions

Workforce Management E-Commerce

Channel Management

Leading Edge scenarios for

strategic Industries, e.g.Case Management,Professional Services, In-House Repair, PlannedServices, iObjects forAutomotiveand many more)

Industry-specific

People-Centric Roles

Enhanced CRM Core

Functionality forMarketing, Sales, Serviceand Analytics

Interaction Center

Web Client

Collaborative Channel

Management scenario

SAP CRM 3.1

SAP CRM 4.0



Customer Centric Business with mySAP CRM

Service as integral Part of CRMRich Functionality and Supporting Capabilities



mySAP CRM Service Solution Map

Enterprise ServiceService Planning &

Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations

ManagementProfessional Services

Field ServiceResource Planning

& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment

Customer Service Help Desk Customer Service & Support Complaint Management

Channel ServicePartner Knowledge

ManagementRequest Management Live Partner Support

Installed Base

Management

Complaints & Returns

Management

Analytics Customer Analytics Product Analytics Marketing Analytics Sales Analytics Service Analytics Interaction ChannelAnalytics

mySAP CRM offers a complete service solution for efficientlymanaging the entire service lifecycle



mySAP CRM Service Solution Map


Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations



& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment




Installed Base

Management


Management





Example - Planned Services

Time based Counter Based

Service Executive: We would like

to realize a consistent revenue

stream from our service

operations.



Register

products for

service

7

4

2

3

5

1

6

Create andoptimize

assignment

Define service

contract

Perform service

processing

Perform billingof contract

Perform service

and confirmation

Scenario - Planned Services

Perform service plan

simulation and

forecasting



Top Features and Benefits - Planned Services

Top new Features: Individual or periodic scheduling of

planned services

Intervals of planned service can be

based on time, counter or both Automatic generation of follow-up

documents (service orders, quotations,

activities) at definable points in time

Top Benefits: Prevents unplanned downtimes through

regular service

Organizations can garner additional

revenue by offering customers follow-up

service

Enables the efficient planning of resources

(for example, personnel and materials)

Example Service Contract & Entitlement



Example - Service Contract & EntitlementManagement

Service Manager: I would like to

provide differentiated entitlementsbased on customer value and customer

needs.

Scenario Service Contract & Entitlement



Scenario - Service Contract & EntitlementManagement

6

4

2

31

8

5

Create service

contract

Create contract

quotationRegister product

and warranty

Process

service order

Perform

service

contractbilling

Escalate

service order

Perform

contract and

warrantyanalysis

7

Perform

service order

confirmationand billing

Top Features and Benefits Service Contract &



Top Features and Benefits - Service Contract &Entitlement Management

Top new Features: Warranty (Customer and Vendor

warranties) validation for customer assets

in case of service, complaint or repair

Service Contracts includingValue/Quantity limits

Service Contract Quotation

Top Benefits: Service offering tailored to meet individual

customer needs

Turning service obligations into profitable

new business

Streamlined, cost efficient warranty

processing satisfying customers

expectations



Example - Case Management

Service Manager: I need to bundle andtrack business processes throughout

multiple organizational entities.


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Scenario - Case Management

Create case

7

4

2

3

5

1

6

Create casehierarchy

Process case

Close case

Create service

confirmationPerform

analysis ofcase

Perform billing


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Top Features and Benefits Case Management

Top Benefits: Provides a central repository for managing

common information originating from

multiple sources and channels

Keeps an audit trail of changes thus

providing greater visibility

Improve customer interaction consistency

Top new Features: Transaction management supports the

linking of business transactions to a case

Powerful case search enabling a natural

language text search against case notesand linked documents

Case hierarchy supports visibility of

relationships among cases

Example - Service Order Management (with


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Example - Service Order Management (withResource Planning)

Service Manager: I need to streamlineWorkforce Management processes to

ensure compliance with SLAs, contracts

and customercommitments while

monitoring utilization.

Scenario - Service Order Management (with


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Scenario - Service Order Management (withResource Planning)

Make inquiry

77

44

22

33

55

11

88

66

Convert

quotation into

service order

Accept

quotation

Create and

communicate

quotation

Execute

assignment,

perform

confirmation

Create and

optimize

assignments

Approve

confirmation,assign costs

Bill customer,

perform analyses

Top Features and Benefits - Service Order


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Top Features and Benefits - Service OrderManagement (with Resource Planning)

Top new Features: Consideration of required qualifications

and skills during scheduling

Amount Allocation - Ability to define who

should pay which amount shortly beforebilling

Service Order Quotation

Top Benefits: Improved operational efficiency

Resource planners have an at a glanceview of all resources and service visits that

are being performed.

Enables the efficient planning of resources

(for example, personnel and materials)


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Example - In-House Repair

Service Representative: I need

to have full access to repair

procedures and operations to

manage all activities involved in

the return/repair process.


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Requestrepair

7

4

23

5

1

8

6

Plan repair steps

Perform

confirmation

Send in defective

product

Create service

quotation

Create invoice Return repaired

product

Analyze defectreasons

Scenario - In-House Repair

T F t I H R i


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Top Features - In-House Repair

Manage the whole in-house repair process from

creation to cash:

Order Management - create in-house repair orders, check whether

warranty exists, define repair steps and assign an existing service

contract.

Engagement Management plan repair costs,

manage quotation, record time and spare

parts used, and bill the client.

Logistics Integration monitor and check

availability of required service parts, delivered

products to be repaired, and delivered

temporary replacements.

Controlling Integration plan repair costs

and analyze costs and revenues resulting

from the repair.

Escalation Management monitor and escalate existing in-house

repair orders based on relevant service level agreements.

SAP CRM S i


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mySAP CRM Service


Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations



& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment




Installed Base

Management


Management



E l M bil S i


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Example Mobile Service

Service Manager: I want to

improve the accuracy of billings

and reduce my time to cash by

having my representatives enterconfirmations directly.

T F t M bil S i


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Top Features - Mobile Service

Top new Features for Laptop: Service Contracts

Product Registration

Installed Base Management

Individual Object

Pricing

Top Features for Handheld: Service Order Creation

Complaint CreationIntegration to Product Catalog

Integration to Backend Systems (including

Controlling, Materials Management)

SAP CRM S i


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mySAP CRM Service


Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations



& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment




Installed Base

Management


Management



E l E S i


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Example E-Service

IC Manager: My Interaction Center is

overwhelmed with customer calls

checking order status and initiating

service requests.

Top Feat res and Benefits E Ser ice


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Top Features and Benefits - E-Service

Top 3 new Features: Appointment Offering ability to request a

preferred date and time for an onsite visit

Product Registration register purchased

products Complaint management create

complaints, check whether warranty exists

or a product can be returned

Top Benefits: Customers can resolve their own issues

easily saving time and resources

Reduce internal costs for order processing

by automatically triggering the relevant

steps for returning products and issuing

credit memos

mySAP CRM Service


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mySAP CRM Service


Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations



& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment




Installed Base

Management


Management



Top Features and Benefits Customer Service (in


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p (the Interaction Center)

Top new Features: Information Helpdesk - Quickly providing

consistent and relevant solutions

Customer Service & Support - Accepting,

tracking and fulfilling customer servicerequests

Comprehensive management of the entire

Complaint and Return process

Top Benefits: Improve customer satisfaction with increased

first call resolution

Increase revenue by delivering the right service

to the right customers based on entitlements

Optimize customer satisfaction and cost

controls by providing agents with complaint

guidelines and escalation procedures

mySAP CRM Service


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mySAP CRM Service


Forecasting

Customer Service &

Support

Resource Planning &

Optimization

Service Operations



& Optimization

Installed Base

Management

Service Order

Management

Service Contract

Management

Complaint

Management

Van Stock

Management

E-ServiceKnowledge

Management

Request

Management

Live Customer

Support

Account Self

Service

Installed Base

Management

Complaints &

Returns

Management

Billing & Payment




Installed Base

Management


Management



Service Analytics Example


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Service Analytics - Example

Service Executive: I need a snapshot

view of my Service portfolio and the

profitability of those product lines.

Service Analytics Top Content Enhancement with


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Installed Base Analyses

Product Quantity perInstalled Base

Individual Object Quantity per Installed Base

Installed Base Analysis by LocationAverage Order Volume per Installed Base

Profit per Installed Base

Service Plan Simulation Analyses

Resource Requirements and Service Volume

Comparison of Service Plan Simulations

y pBW3.20

Strategic Service Planning (SEM 3.5)

Scenario for Strategic Service Planning within

Service Profitability Planning

Topics


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Topics


What Can Be Accomplished!


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What Can Be Accomplished!

Improve service through transaction surveys

More services, up-sell

Improved Contract/Warranty Retention

Increase partnership for self maintenance revenue

Service

Satisfaction

Reduce inventory

Reduce material in transit

Improved Field stock accuracy

Improve obsolete stock and turns

Materials

Management

Self help & more remote solutions reduce on site cost

Improved utilization calls per person

Entitle before service, revenue increase

Service

Fulfillment

Improve Warranty conversion

Stop revenue leakage (free service)

Free to Fee revenue

Reduce service days sales outstanding (DSO) resulting in additional cash flow

Revenue

Performance

achieving service profitability with mysapcrm service

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