innovations in partner management - service strategies · sony corporation ♦established 1946;...

Innovations in Partner ManagementInnovations in Partner ManagementDan P. WiersmaSVP Service Platform

Sony Service StrategySony Service Strategy

♦ How has Sony?– Selected vendors

– Leveraged partners’ strength

– Minimized partner’s weaknesses

– Set up Performance Measurement Systems

– Managed the relationships

– Established a management structure

– Reduced Costs

– Improved Customer Satisfaction

Our Look Today – Partner Management InnovationsOur Look Today – Partner Management Innovations

Sony CorporationSony Corporation

♦ Established 1946; Tokyo, Japan as Tokyo Tsushin Kogyo, Tokyo Telecommunications Engineering Company, Ltd. by Masaru Ibuka and Akio Morita

♦ Changed to Sony in 1955♦ Today the company consists of

– Electronics– Games– Pictures– Sony BMG Music– Sony Financial Services– Sony Insurance– Sony Ericsson

♦ FY 2005 Sales; ~$70B USD♦ Electronics is the largest segment at ~$50B

– SEL (Electronics US Operation) is the largest of the regions in terms of sales

Sony in the US (SEL)Sony in the US (SEL)

♦ #1 Brand in America (2005 Harris Poll)

♦ Sales, Marketing, Manufacturing, Engineering, Service and Support Operations

♦ >15,000 employees

♦ >10,000 products in TV, Digital Imaging, Home Audio, Home Video, Personal Audio, General Audio, eVehicle, Broadcast & Business, Storage and Components

♦ HQ facilities located in San Diego

♦ Multiple facilities located in the US and Mexico

Sony Service PlatformSony Service Platform

♦ Cost & Profit Center Structure♦ ~1400 Employees internally and 1000’s with our partners♦ Support over 10,000 active products and more than 20,000 total

(inactive and active)♦ Manage ~2M returns and repairs per year♦ Manage 3-4M total parts in inventory; 800K orders/1.7M lines

per year♦ Receive & respond to ~40M contacts per year

(Voice, Web, email, Chat)♦ Integrated Service for SEL Consumer Products

– Contact Center Management– Consumer & Vaio Repair/Refurb Service (In Home & Depot)– Repair Parts and Accessories– Product Regulatory Compliance– Customer Satisfaction & Quality Reporting

Service Platform OrganizationService Platform Organization

CE Service

V.P.

CE Service

V.P.

Call Center

V.P.

Call Center

V.P.

CS21 & Quality

V.P.

CS21 & Quality

V.P.

Repair Parts

V.P.

Repair Parts

V.P.

Dan WiersmaSenior Vice President

Dan WiersmaSenior Vice President

IT Service

V.P.

IT Service

V.P.

• Customer Satisfaction

• Quality

•10 WW centers

•800-1200 agents

•3+ million contacts/month

•Web, email, chat, and phone

• Centralized parts warehouse

•Forecast, Plan & Procure

•Repair & Escalation Support

•Refurb

•ASC/Field Ops

• Repair & Escalation Support

•Refurb

•ASC/Field Ops

Before - Large number of Internal Service Operations

High costPoor CS

Little specialization

Before - Large number of Internal Service Operations

High costPoor CS

Little specialization

Now – Insourced andOutsourced Solutions

Much lower costMuch better CSATProduct experts

Now – Insourced andOutsourced Solutions

Much lower costMuch better CSATProduct experts


Strategic Re-Engineering of Internal Service NetworkStrategic Re-Engineering of Internal Service Network


Sony Service Platform set up newPartner Management System to meet goalsSony Service Platform set up newPartner Management System to meet goals

Excellent

Customer

Satisfaction

Excellent

Customer

Satisfaction

Strong

Financial

Results

Strong

Financial

Results

Growth & Expansion

of the Business

Growth & Expansion

of the Business

CoreCore

Non Core High External Value Added Capability

High Customer Touch & Technical Capability

Innovation- Determine Core & Non-CoreInnovation- Determine Core & Non-Core

Segments:- Repair Centers- Refurb Centers- Call Center Providers- Warehousing

Consolidation:- Laredo (internal)- Solectron- Alorica- New Breed

Innovation - Determine What You Do BestInnovation - Determine What You Do Best

♦ Lesson learned – we had a very clear guide as to comparable metrics between internal and external servicers.

♦ Advantage of an insourced solution.

♦ Allowed us to determine what is best internally and what is best externally.

DIGA/ HA/ HV/ ME

Action – De-authorize categories

TV

“Sweet spot”“Sweet spot”

Innovation -Select Best in Class PartnersInnovation -Select Best in Class Partners

♦ Lesson learned – once we had clear metrics, we could determine a clear ranking system to pick good versus bad providers

♦ Developed a complex algorithm to rank servicers by our 6 metrics – TAT, TAT>12, CR, CS, Cost and Fraud.

♦ We ranked our servicers on the two metrics – Customer Satisfaction and Cost / Fraud

♦ Each servicer received a scorecard where they fell compared to their peer group

♦ Based on our metrics, we reduced over 600 servicers

TV MaxRate versus Performance Score

$-

$50

$100

$150

$200

$250

$300- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Performance Score

Max

Rat

e

“Red is Dead”

Innovation -Partner with Good ServicersInnovation -Partner with Good Servicers

♦ Leveraged ability of key GOOD servicers..

♦ Select key partners in Digital Imaging (Precision Camera), Computers (Solectron) and TV (QualxServ).

♦ Sony and key servicers became true partners

– Sony drives business to them – phone, web, some exclusivity

– In return, high levels of performance and commitment

– Better rate / cost structure for both partners

TVDIGA/ HA/ HV/ ME

Key Relationships

Innovation-Partner with Good ServicersInnovation-Partner with Good Servicers

♦ Depot Repair – 3-day target TAT (Turn-Around-Time)

– Both Sony-internal & 3rd party

♦ Customer Self Repair (CRU)– 1-day target TAT

– HDD, ODD, Memory, Keyboards

♦ Onsite Repair – 2-day target TAT

– Standard on Desktops

– Optional/upgrade on Notebooks

Memphis, TN

ITD-Service-San Diego, CA

Service Self Help

Electronic Dispatch UPS Stores

Expanded Networks

ResultSony Controls User Experience

Better Customer Satisfaction

More touch points for customers

ResultSony Controls User Experience

Better Customer Satisfaction

More touch points for customers

Innovation-Extend Our Reach VirtuallyInnovation-Extend Our Reach VirtuallySony Offers Customers the Right SolutionSony Offers Customers the Right Solution

Innovation -Train and SupportInnovation -Train and Support

♦ Previously, we neglected our training and support functions

♦ Sony took the savings from our program and invested in “best in class” support:

– Technical Phone Support – hired seasoned ex-repair techs to man phone support lines to talk servicers through problems

– Technical Web Support – service manuals, FAQ’s, service bulletins and key tips on the web – servicers bring them on calls

– Comprehensive Training Program – utilizing live trainers; “train the trainers” at major dealers and web training

– Technical Call Support-training of our partner agents in products & technologies

– Soft Skills Support-working with our partners to insure non-technical training is offered and supported by their operations

Innovation-Train & Support (New Product)Innovation-Train & Support (New Product)

SonyTrainingCourse

Development

PartnerTraining

Department

CentraWeb-Based

Training

Partner Techs &Support

New

TV

Pro

du

cts

Pre-P

roduct

eB

n

t

Intr

oCo

urs

e

Par

tner

Tec

hTr

ain

ing;

Ser

vice

Courseg

ins

Product

io

Prod

uc

Rel

ease

Star

ts

om

te

Par

tner

Fin

ish

es

Trai

nin

g fo

r tr

iage

Co

urs

eC

ple

& T

ech

s

Mo

nit

ori

ng

Min Qualified TimeMin Qualified Time

Innovation -Train & Support (In Home)Innovation -Train & Support (In Home)

Partner Techs

PartnerTraining

Dept

PartnerTechnical Support

Center

Sony AnalysisOf

Exchanges Units

Sony Ride Along Program

w/Techs

SonyTraining

Dept.

Sony AnalysisOf

CRM Database

Training

Demand & Performance Training ProcessDemand & Performance Training Process

Innovation-Performance ManagementInnovation-Performance Management

♦ Establish clear performance level requirements linked to the business

♦ Review regularly; operational requirements dictate hourly, daily or weekly reviews of performance (e.g. Contact Center, Repair/Refurb partners)

♦ Establish minimum quarterly review meetings with senior management and operations management of both companies

♦ Partners should share in the benefits of improved performance above targets


KPI TargetACD Metrics Service Level

ASA

Abandon

ATT

80% or above

< 60 secs

< 5%

Trends and comparisons

Handled vs. Forecast and Staffing

General overview

Detail/issues discussed in separate forecast meeting

100% (+/- 5 to 10%)

Voice of the customer

FCR

Agent Knowledge

Agent Courtesy

Agent Responsiveness

80% or above; focus on improvement

> 3.25 avg

> 3.25 avg

> 3.25 avg

Escalation/transfer rate CE < 8%

VAIO < 12%


Threshold – X% / Target – Y% / Maximum – Z% FY’06 YTD -----

Threshold

X%

Target

Y%

Max

Z%You are

here

You are here

Month

# Surveys Received

# Surveys

YES %

# Surveys Received

# Surveys

YES %

# Surveys Received

# Surveys

YES %

# Surveys Received

# Surveys

YES %

# Surveys Received %

Apr-06 1405 973 714 454 536 313 864 524 3519May-06 839 579 587 360 379 216 593 366 2398Jun-06 791 550 644 385 343 198 626 359 2404Jul-06 890 588 657 402 342 197 795 472 2684Aug-06 994 664 771 467 332 173 888 552 2985

HPD PMID Desktop Notebook Weighted Avg.


OBA Results

July(WK1)

July(WK2)

July(WK3)

July(WK4)

Aug(WK1)

Aug(WK2)

Aug(WK3)

Aug(WK4)

Sept(WK1)

Sept(WK2)

Sept(WK3)

Repeat Repair Percentage

Aug (WK4) Sept (WK1) Sept (WK2) Sept (WK3)

WIP - Sony

June(WK4)

June(WK5)

July(WK1)

July(WK2)

July(WK3)

July(WK4)

Aug(WK1)

Aug(WK2)

Aug(WK3)

Aug(WK4)

Sept(WK1)

Sept(WK2)

TAT

Aug (WK4) Sept (WK1) Sept (WK2) Sept (WK3)

Repeat Returns

Repeat Returns

WIP WIP

Quality/OBA

Quality/OBA

TAT TAT


Call Center Workforce Forecasting ModelCall Center Workforce Forecasting Model

All Products Offered

0

20,000

40,000

60,000

80,000

100,000

120,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Offe

r Cal

ls/w

eek

FY 2003 FY 2004 FY 2005 FY 2006

Forecast


95 89

74

0102030405060708090

100

J J A

•Working with In Home Service Partners to identify issues creating missed service calls

•Constant Feedback to all Touch Points• Tier II• Service and Delivery• Partner 1• Partner 2• WRPC

• 22% Improvement

27

19

1311

97 6

0

5

10

15

20

25

30

Missed Appt Wrong PartsOrdered

Wrong PartsShipped

Missing Parts MissedCustomer

Parts OrderedWrong Location

Parts Returned

FIRST CALL RESOLUTION – VAIO Three Point Plan FIRST CALL RESOLUTION – VAIO Three Point Plan

Issue: Missed On-Site AppointmentsIssue: Missed On-Site Appointments

Innovation-Partner Management StructureInnovation-Partner Management Structure

♦ Lessons learned; establish key management resources to manage the partner relationships

♦ Each functional partner relationship in Sony Service Platform has a partner management team (e.g. Contact Center, In Home Service, Warehouse and Refurb)

ManagerEngineering

ManagerEngineering

Vaio ServiceVice President

Vaio ServiceVice President

ManagerOperations

ManagerOperations

ManagerMarket Quality

ManagerMarket Quality

Sr. ManagerVOSC

Sr. ManagerVOSC

ManagerService

Partners

ManagerService

Partners

ManagerProcurement

ManagerProcurement

Innovative Partner Benefit ExamplesInnovative Partner Benefit Examples

♦Consumer Service-In Home

– Outsourced our internal In-Home solution

– Clear Communication Path

– Innovated a new in-home service solution

– Used the web to drive customer inquiries and scheduling

Before:♦ In-home TV service a part

of Sony Service

– Limited coverage

– High costs

– Average customer satisfactionNow:

♦Sony In-home techs a part of QualxServ

Pros:– Product expertise transferred

– Internal In-Home service cost eliminated

– Cross-training opportunity

– Increased national coverage at lower cost

– Improved Customer Satisfaction

QualxServ-Sony’s In-Home Service PartnerQualxServ-Sony’s In-Home Service Partner

RepairRepair

RepairRepair

RepairRepair

RepairRepair

RepairRepair

RepairRepair

RepairRepair

RepairRepair

• Process Expertise• Unified Customer Interface• Eliminate Fraud

Hard Fraud – Parts TheftSoft Fraud – Solder / Alignment

• Combined Repair Status Reporting• Daily Reporting and Visibility• Field Q.C. Feedback

• Process Expertise• Unified Customer Interface• Eliminate Fraud

Hard Fraud – Parts TheftSoft Fraud – Solder / Alignment

• Combined Repair Status Reporting• Daily Reporting and Visibility• Field Q.C. Feedback

• Focused Account Management• Consolidated Claims Handling &

Customer Satisfaction • Daily Status Reviews

• Focused Account Management• Consolidated Claims Handling &

Customer Satisfaction • Daily Status Reviews

InIn--Home TV ServiceHome TV ServiceSingle communication channel = better account

management & partnership

Single communication channel = better account

management & partnership

QualxServ-Clear Communication/Escalation PathQualxServ-Clear Communication/Escalation Path

Calls Sony Call Center - Tier 1(Call Avoidance)

Call Dispatched

Troubleshoot

SchedulesIn-Home Service

Order Parts

Dispatches TechRepair

Completed

Customer Sony QualxServ

Calls Customer( Tier 2 – Triage )

Parts Center

QualxServ-Joint Triage Increases CSATQualxServ-Joint Triage Increases CSAT

Call

Web

Self –Scheduling

2. In-Home Solution

1. Self Serve Solution or

www.updatemytv.com

Self-ServiceScheduling

Reduced Calls & Costs

Self-ServiceScheduling

Reduced Calls & Costs

QualxServ-Web Solution for SW UpdateQualxServ-Web Solution for SW Update

Huge Project for Sony76% of events handled viaWeb / Self - Scheduling

End User

CISC

Software Distribution

Success Factors in Partner ManagementSuccess Factors in Partner Management

♦ Business strategy

♦ Select Best in Class Partners

♦ Solid Service Level Agreement (SLA)

♦ Train & Support the Partners

♦ Provide regular performance management process

♦ Create a Partner Management Structure

♦ Create an environment of open communication and partnership; not just a vendor

innovations in partner management - service strategies · sony corporation ♦established 1946;...

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