Transitioning from reactive to proactive service by leveraging remote monitoring technologies

Chris La FrattaDirector, Global Services Engineering Programs

Agenda

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• Philips Healthcare

• Customer Insights

• Remote Service at Philips Healthcare

• Proactive Remote Services

• Value-Added Services

• Summary

PhilipsSimply focused on health and well-being

Depth and reach of Philips HealthcareWhat we do. Where we are.

The current reality in services

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Reactive service model

Tier 1Customer Focused / Basic Product Knowledge

Tier 2Technical Experts / Application Specialists

Field Service Engineer onsite

support

(“First trip” resolution)

Remote

fix

Route to Tier 2

support

Failure analysis

Dispatch engineer

Call closure

5-15 min€20/call

4-8 hours€500/call

30-180 min €50/call

Incoming customer call

System

Fails

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Philips Remote Services implementationFacts and figures

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>7,500 healthcare facility connections

>45,000 device connections

IPsec VPN & SSL based onindustry best practice

ISO 27001 CertifiedReal-time monitoring &

software updates

Remote fix & diagnosis

Faster speed of service and lower costs through remote services

Proactive MonitoringCondition-based, system-generated alerts

What

• Monitor critical system parameters in real time

• Create automatic notifications from system-generated alerts

• Address system deviations proactively and preempt failures

Why

• Avoid system downtime and customer disruption

• Improve workforce and spare parts planning

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Proactive SW updatesAutomatic distribution of SW updates, patches and anti-virus files

What

• Schedule and push SW updates automatically

• Maintain SW revision records systematically through ERP system integration

Why

• Minimize system downtime; updates can be performed off hours

• Maintain latest system SW revisions for increased performance, compliance, & security

• Reduce travel and workload for internal field engineers

ERP

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Post-monitoring trending & analysisAnalyzing system performance for patterns and prediction

What

• Analyze system performance over time and across installed base

• Identify system or usage patterns preceding failures

• Develop predictive algorithms

Why

• Avoid system downtime and customer disruption

• Schedule and plan service/parts replacement with advanced notice

• Improve product design/reliability

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DB

Value-added service opportunitiesUsage-based billing, consulting and opportunity mining

What

• Create automatic customer invoices based on real time device usage

• Incorporate usage information into preventative maintenance strategy

• Identify sales opportunities based on real time device usage data

Why

• Enable usage-based selling & workflow consulting

• Improve customer intimacy and partnerships

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Summary

• Customers value speed of service and planned maintenance

• Remote services facilitate faster break-fix service• Remote diagnosis and remote fix

• Proactive remote services minimize customer disruptions• Proactive monitoring/alerting

• Proactive SW updates

• Post-monitoring trending and analysis

• Remote services provide a foundation for value-added services• Usage-based billing

• Work-flow consulting

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