Strategic Service Management

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Contents 1 Strategic Service Management (SSM) 2 Reason for Strategic Service Management1 3 Best Practices2 4 Results from Strategic Service Management deployments3 5 See also 6 Further reading 7 Footnotes

[edit] Strategic Service Management (SSM)

Strategic Service Management, SSM, is a new customer commitment-centric business strategy that optimizes a company’s service business processes through a single, integrated view of post-sale service operations, by taking into consideration the planning and forecasting of service parts and resources, and the strategy and management of customer commitments, service partners, and service pricing.

[edit] Reason for Strategic Service Management¹

• Products have become commoditized and product-based profit margins have decreased over time therefore companies are looking for new sources of revenue
• Companies are looking to differentiate themselves from the competition and a best in class service organization can definitely lead to customer loyalty
• Customers are expecting faster resolution time when they place a service call
• Asset management responsibility and accountability are shifting from the enduser

enterprise to OEMs and their service provider partners

• Cost cuts require higher worker productivity

[edit] Best Practices²

1. Bring Field Service Management and parts logistics under one operational umbrella;
2. Leverage existing and new technology solutions to synchronize four service pillars;
3. Address process deficiencies before deploying technology;
4. Define requirements and success criteria clearly before evaluating technology solutions;
5. Leverage partnerships with service and logistics providers;
6. Attack aftermarket service as a top-line business opportunity;
7. Involve stakeholders early and often in transformational process;
8. Adopt a two-pronged approach to measuring the efficacy of after-market service:operational and strategic;
9. Adopt an enterprise-wide perspective; and
10. Invest more energy in forecasting and planning technician capacity and work order

demand.

[edit] 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

[edit] See also

• Field Service Management
• Workforce management
• Market-Adaptive Pricing
• Service Parts Management
• Command Center

[edit] Further reading

Noventum's Strategies and Challenges in Service Management, September 2007

AberdeenGroup's Strategic Service Management: Moving Beyond the Tactics, May 2007

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

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

[edit] 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