Winning with Service-Excellence - How companies cope with rising demands in services

“The best service is no service!” This quote obviously should not be understood literally. But since service today is often characterized by customers asking actively for service or clients who have no assigned personal contact, this quote aims towards another direction. The best service is no service means that service providing companies identify their customers’ needs and are able to meet these
needs, ideally in a way, that their clients do not recognize that they are receiving a service. Even though customers need to notice that the service provider is working for the money he gets, the supplier should proactively instead of reactively take care for the satisfaction of his customers. However, many companies today are far away from such an innovative approach. Mostly concentrating on the product business, many companies start to realize that refocusing on service
might be a valid option.
But, it is a long way from selling products to offering innovative services. Some companies are not as successful as others in meeting the challenges that come along with this development. Service offerings make up a significant share of turnovers and profits. Therefore no company can afford to do without gradually extending its service portfolio.
However, what are the drivers and influencing factors for a company to be successful with innovative services? Which are the fields it should concentrate on for sustainable success? How does an effective service concept have to be designed? And finally, what is the strategic approach hidden behind these concepts? Facing these issues, a substantial question arises: When has the right moment arrived for a company to change from a product supplier into a service provider?
Within this study, Barkawi Management Consultants presents eight exemplary cases of companies which accept the challenge of offering growing and increasingly complex services and are successful in mastering this task. Each of these cases demonstrates a different approach towards an innovative b2b service concept and informs about the typical problem areas a company faces on its way to
become a successful service provider.
For better comparability, the study was limited to the industries of high tech and mechanical engineering. Within these industries it was attempted to cover as many types of business as possible.
Ten influencing factors were deduced from the conducted surveys and interviews,
having a decisive effect on a service company’s success. These factors are:
• Service branding
• An innovative service portfolio
• Remote services
• E-technologies & e-services
• Management of customer expectations
• Quality of service
• Explicit service strategy
• Service as an independent organizational unit
• Bonus (Incentives) in the field of service
• Design for serviceability
The study closes with an outline for service businesses. Barkawi Management Consultants gives an estimation of trends and progress to be expected for the next years and is winding up with discussing topics like partner management, service marketing or multi vendor services.
[Studien Infos ausblenden]

1. Executive Summary

2. Introduction
2.1. Objective of and reason for this study
2.2. Scope of the study

3. Services – more than just after sales activities
3.1. Definition and range of the term “service”
3.2. Current service levels in the examined industries
3.3. Customer requirements in respect of industry,
product and service
3.4. Diversification via provision of services
– from maintenance to stand-alone services

4. Approach used in the study
4.1. Industry Focus
4.2. Key Success Factors
4.2.1. Market factors
4.2.2. Corporate factors
4.2.3. Strategic direction
4.3. Outcome
4.3.1. Company Cases
4.3.2. Evaluation profiles
4.3.3. Service trends and critical success factors

5. Cases and examples
5.1. Mechanical engineering sector
5.1.1. ABB Robotics
5.1.2. Agfa Graphics
5.1.3. TRUMPF
5.2. High tech sector
5.2.1. Bang & Olufsen
5.2.2. Bull
5.2.3. EMC²
5.2.4. Pentax
5.2.5. SonyEricsson

6. Appraisal
6.1. Service branding and service marketing
6.2. Innovative service portfolio
6.3. Remote services
6.4. Systematic use of e-technologies / e-services
6.5. Management of customer expectations
6.6. Quality of service as a distinguishing feature
6.7. An explicit service strategy
6.8. Service as a stand-alone organisational unit
6.9. Incentives (bonuses) in the service business
6.10. Design for serviceability

7. Where does service go?
Literature
[Inhaltsverzeichnis ausblenden]

Figure 1: Revenues of selected companies from provision of
services in percent
Figure 2: Proportion of revenues generated by provision of services
in selected industries in percent
Figure 3: Classification of services
Figure 4: Different service levels
Figure 5: Proportion of sales represented by services, listed by industry
Figure 6: Sales contribution trends by product and service
Figure 7: Comparison of profit margins
Figure 8: The challenge of service-focused product development
Figure 9: Reasons for losing customers
Figure 10: Important factors from a customer perspective
Figure 11: Reasons for offering product-related services
Figure 12: Development from product business to full service portfolio
Figure 13: Levels of service development
Figure 14: Recommended organisational structure corresponding
to the level of service development
Figure 15: Approach used in the study
Figure 16: Factors contributing to service business success
Figure 17: Service Profile
Figure 18: Innovative Service Belt
Figure 19: ABB Robotics – Customer structure regarding service and
product of ABB
Figure 20: ABB Robotics – Service Profile
Figure 21: ABB Robotics – Innovative Service Belt
Figure 22: Agfa Graphics – Service Profile
Figure 23: Agfa Graphics – Innovative Service Belt
Figure 24: TRUMPF – Service Profile
Figure 25: TRUMPF – Innovative Service Belt
Figure 26: Customer structure regarding service and product of B&O
Figure 27: Bang & Olufsen – Service Profile
Figure 28: Bang & Olufsen – Innovative Service Belt
Figure 29: Bull – Service Profile
Figure 30: Bull – Innovative Service Belt
Figure 31: Skills development of service employees
Figure 32: Revenue structure as of Fiscal Year 2007
Figure 33: EMC – Service Profile
Figure 34: EMC – Innovative Service Belt
Figure 35: Pentax Pay per Use Model
Figure 36: Pentax – Service Profile
Figure 37: Pentax – Innovative Service Belt
Figure 38: Service roadmap from basics to world class service
Figure 39: SonyEricsson – Service Profile
Figure 40: SonyEricsson – Innovative Service Belt
[Tabellenverzeichnis ausblenden]