Achieving Service Profitability With MySAPCRM Service

Achieving Service Profitability with mySAPCRM Service
Ken Osborn
Topics Business Positioning Service Our CRM 4.0 Service Solution Offering Key Takeaways
SAP AG 2003, 4.0 Infoday, K. Osborn, 2
Service is evolving as a Business

Most Firms (75-90%) fall into this area today
Independent
Strategic Line of Business

Run by an executive, making their own choices and decisions regarding the abilities to best support products and generate revenues and profits directly from sales of services
Profit Center
Budget
Contribution Center
Provides a service to someone else; does not stand by itself but in support of another; may generate a small amount of profit
Cost Center
Managed independently for the purpose of a business by itself; has most or full revenues
Revenue
Provides a service to someone else; does not stand by itself but in support of another; runs against a budget; creates no revenue
Dependent
To get here, firms must become customer centric & integrate across Dept Lines
Source: Service Innovations, Inc.

Business Positioning - Service

mySAP CRM enables organizations to manage the complexities 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 provide service 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
Topics Business Positioning Service Our CRM 4.0 Service Solution Offering Service Management Key Takeaways
mySAP CRM Road Map
SAP CRM 4.0 SAP CRM 3.1

People-Centric CRM Case Management, Professional Services, InHouse Repair, Planned Services, iObjects for Automotive and many more) Industry-specific People-Centric Roles Enhanced CRM Core Functionality for
Marketing, Sales, Service and Analytics Leading Edge scenarios for strategic Industries, e.g.
SAP CRM 3.0

Complete operational multi-channel CRM Support of connected customer-centric endto-end processes across the
mySAP.com e-Business platform
Ease of use through preconfigured roles for Service Managers, Service Reps, Customers, Partners
Functional Enhancements
Leading CRM Analytics
Analytics Extended Order Mgmt. Mobile Solutions Workforce Management E-Commerce Channel Management
Interaction Center Web Client Collaborative Channel Management scenario
INDUSTRY-SPECIFIC CRM
Customer Centric Business with mySAP CRM
Service as integral Part of CRM

Rich Functionality and Supporting Capabilities
mySAP CRM Service Solution Map

Enterprise Service Service Planning & Forecasting Resource Planning & Optimization Knowledge Management Customer Service & Support Installed Base Management Resource Planning & Optimization Service Operations Management Complaint Management Complaints & Returns Management Professional Services Van Stock Management Billing & Payment
Field Service
Service Order Management
Service Contract Management
E-Service
Request Management Help Desk
Live Customer Support
Account Self Service
Installed Base Management
Customer Service
Customer Service & Support
Complaint Management Installed Base Management Complaints & Returns Management Interaction Channel Analytics
Channel Service
Partner Knowledge Management
Request Management
Live Partner Support
Analytics
Customer Analytics Product Analytics Marketing Analytics
Sales Analytics
Service Analytics
mySAP CRM offers a complete service solution for efficiently managing the entire service lifecycle
mySAP CRM Service Solution Map

Field Service
E-Service
Customer Service
Channel Service
Request Management
Analytics
Sales Analytics
Service Analytics
Example - Planned Services

Time based Counter Based
Service Executive: We would like to realize a consistent revenue stream from our service operations.
Scenario - Planned Services

Define service contract Register products for service Perform service processing
Create and optimize assignment
Perform service plan simulation and forecasting
Perform billing of contract
Perform service and confirmation
7 5 6
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 Management

Service Manager: I would like to provide differentiated entitlements based on customer value and customer needs.
Scenario - Service Contract & Entitlement Management

Register product and warranty Create contract quotation Create service contract Perform service contract billing
2 1 Perform contract and warranty analysis Perform service order confirmation and billing 3
4 Escalate service order Process service order
7 6
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 including Value/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 and track business processes throughout multiple organizational entities.
Scenario - Case Management

Process case Create case 2 1 Perform analysis of case Create service confirmation 3 Create case hierarchy
Perform billing
Close case
6
Top Features and Benefits Case Management
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 notes and linked documents Case hierarchy supports visibility of relationships among cases 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 Benefits:
Example - Service Order Management (with Resource Planning)

Service Manager: I need to streamline Workforce Management processes to ensure compliance with SLAs, contracts and customer commitments while monitoring utilization.
Scenario - Service Order Management (with Resource Planning)

Make inquiry Create and communicate quotation Accept quotation
2 2 1 1 Bill customer, perform analyses 8 8 Approve confirmation, assign costs Convert quotation into service order
3 3
4 4 Execute assignment, perform confirmation Create and optimize assignments 5 5
7 7
6 6
Top Features and Benefits - Service Order Management (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 before billing Service Order Quotation
Top Benefits:
Improved operational efficiency Resource planners have an at a glance view of all resources and service visits that are being performed. Enables the efficient planning of resources (for example, personnel and materials)
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.
Scenario - In-House Repair

Send in defective product Plan repair steps 2 1
Request repair
3 Create service quotation
Analyze defect reasons Perform confirmation 8 Create invoice Return repaired product 5 6
7
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.
mySAP CRM Service

Field Service
E-Service
Customer Service
Channel Service
Request Management
Analytics
Sales Analytics
Service Analytics
Example Mobile Service
Service Manager: I want to improve the accuracy of billings and reduce my time to cash by having my representatives enter confirmations directly.
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 Creation Integration to Product Catalog Integration to Backend Systems (including Controlling, Materials Management)
mySAP CRM Service

Field Service
E-Service
Customer Service
Channel Service
Request Management
Analytics
Sales Analytics
Service Analytics
Example E-Service
IC Manager: My Interaction Center is overwhelmed with customer calls checking order status and initiating service requests.
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

Field Service
E-Service
Customer Service
Channel Service
Request Management
Analytics
Sales Analytics
Service Analytics
Top Features and Benefits Customer Service (in the Interaction Center)
Top new Features:

Information Helpdesk - Quickly providing consistent and relevant solutions Customer Service & Support - Accepting, tracking and fulfilling customer service requests 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

Field Service
E-Service
Customer Service
Channel Service
Request Management
Analytics
Sales Analytics
Service Analytics
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 BW3.20

Installed Base Analyses
Product Quantity per Installed Base Individual Object Quantity per Installed Base Installed Base Analysis by Location Average Order Volume per Installed Base Profit per Installed Base
Service Plan Simulation Analyses

Resource Requirements and Service Volume Comparison of Service Plan Simulations
Strategic Service Planning (SEM 3.5)

Scenario for Strategic Service Planning within Service Profitability Planning
What Can Be Accomplished!

Improve Warranty conversion
Revenue Performance
Stop revenue leakage (free service) Free to Fee revenue Reduce service days sales outstanding (DSO) resulting in additional cash flow Self help & more remote solutions reduce on site cost
Service Fulfillment
Improved utilization calls per person Entitle before service, revenue increase Reduce inventory
Materials Management
Reduce material in transit Improved Field stock accuracy Improve obsolete stock and turns Improve service through transaction surveys
Service Satisfaction
More services, up-sell Improved Contract/Warranty Retention Increase partnership for self maintenance revenue

Achieving Service Profitability With MySAPCRM Service

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Achieving Service Profitability With MySAPCRM Service

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Achieving Service Profitability with mySAPCRM Service

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

SAP AG 2003, 4.0 Infoday, K. Osborn, 3

Service is evolving as a Business

Strategic Line of Business

Source: Service Innovations, Inc.

Business Positioning - Service

SAP AG 2003, 4.0 Infoday, K. Osborn, 5

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

mySAP CRM Road Map

SAP CRM 4.0 SAP CRM 3.1

SAP CRM 3.0

Leading CRM Analytics

Interaction Center Web Client Collaborative Channel Management scenario

Customer Centric Business with mySAP CRM

Service as integral Part of CRM

SAP AG 2003, 4.0 Infoday, K. Osborn, 8

mySAP CRM Service Solution Map

Service Order Management

Service Contract Management

Request Management Help Desk

Live Customer Support

Account Self Service

Installed Base Management

Customer Service & Support

Partner Knowledge Management

Live Partner Support

Customer Analytics Product Analytics Marketing Analytics

SAP AG 2003, 4.0 Infoday, K. Osborn, 9

mySAP CRM Service Solution Map

Service Order Management

Service Contract Management

Request Management Help Desk

Live Customer Support

Account Self Service

Installed Base Management

Customer Service & Support

Partner Knowledge Management

Live Partner Support

Customer Analytics Product Analytics Marketing Analytics

SAP AG 2003, 4.0 Infoday, K. Osborn, 10

Example - Planned Services

Scenario - Planned Services

Create and optimize assignment

Perform service plan simulation and forecasting

Perform billing of contract

Perform service and confirmation

Top Features and Benefits - Planned Services

Top new Features:

SAP AG 2003, 4.0 Infoday, K. Osborn, 13

Example - Service Contract & Entitlement Management

SAP AG 2003, 4.0 Infoday, K. Osborn, 14

Scenario - Service Contract & Entitlement Management

4 Escalate service order Process service order

Top Features and Benefits - Service Contract & Entitlement Management

Top new Features:

SAP AG 2003, 4.0 Infoday, K. Osborn, 16

Example - Case Management

SAP AG 2003, 4.0 Infoday, K. Osborn, 17

Scenario - Case Management

Top Features and Benefits Case Management

Top new Features:

Example - Service Order Management (with Resource Planning)

SAP AG 2003, 4.0 Infoday, K. Osborn, 20