Three Key Ingredients for Outcome-based Service Excellence...contracts, warranties and subscriptions to commerce, quoting and sales performance management to enable field technicians

Table of contents

Introduction 2

Three key ingredients for outcome-based service excellence 4

A connected suite of applications 5 that span the service lifecycle

Unifiedfront-andback-officesystems, 7 processes,anddata

Serviceavailabilityanytime,anywhere, 8 onallcustomerchannels

A word about AI and machine learning 9

The future of Service: Always on, predictive service 10

Why choose Oracle for enterprise service management? 11

Let’s get started 11

Copyright©2021,Oracleand/oritsaffiliates|Public

Three Key Ingredients for Outcome-based Service Excellence


There’samajorshifthappeningacrossmanufact-uring service organizations. While cost savings andoperationalefficienciesarestilltopbenefits,companiesaregeneratingnewrevenuefromserviceagents’up-selling/cross-sellingproductsandsubscriptions.Meanwhile,formanufacturers

pivotingtooutcome-centricor“product-as-a-service”businessmodels,fieldserviceisbecomingmoreremote,contactless,andintelligent—addingpressure on service organizations to adapt so theycancontinuetomeetcustomerneedsandexpectations.

• New business modelstoprotectandgrowinstallbaserevenuewhilereducingcustomercapitalexpenditure

• Digital-first experiencesthatallowyouto pivottolow-orno-touchservicesatalowercost

• Guided support toolstoquicklyrampupthe nextgenerationofmobileworkers

• Connected assets,remotetelemetryandInternet ofThings(IoT)monitoringtocapture,track andpredictivelyactonyourcustomers’behalf

• Platformsthatconsolidatebusinessfunctions anddeliveraseamlesscustomerexperience

Manufacturershavebegunincorporatinganenter-priseservicemanagementstrategyintotheir overalldigitaltransformation.Theyunderstandthatserviceneedstobeintegratedwithsales,

marketing,finance,supplychain,andoperations tobecometrulypredictiveandprescriptive.Inaddition,serviceleadersarerecognizingthe valueofusingconsolidateddatafromalllines ofbusinesstoreduceprocessfriction,capturepredictablerevenueanddeliverexceptionalcustomerexperiences.

Thisguidewillexaminethestrategiesandtechnologies service organizations are implementingastheypivottoneweconomicmodelsandpositiontheirbusinessesforlong-termgrowth.

Introduction

What are some key factors driving this change?

Evenbeforethepandemic,manufacturerswereclosely eyeing their service organization as a businessunitripefortransformation.Atthesametime,customerexpectationswerechanging,andbuyinghabitsshiftedtoward“as-a-service”orvalue-basedofferingswithreducedCapEx.Theconvergenceofthesethemespresentedamassiveopportunityformanufacturers:Shiftingservicefromacostcentertoapredictablerevenuegen-eratorwithincreasedcustomervalue.

Inlate2019,Gartnerpredictedthatoverhalfofallequipmentmanufacturerswouldadoptoutcome-basedservicecontractsinlessthanfiveyears[Gartner, The Future of Field Service, Dec. 2019] Butthistimelinewasdramaticallyescalated whentherealitiesofCOVIDhit.Almostinstantly, on-sitedeploymentsoffieldpersonnelwerehighlyrestrictedforequipmentanddevicemanufacturers.Fortunately,whenremoteorcontactlesssupportbecametheonlysafewaytoprovideservice,customersquicklyadapted.

The new normal: Digital first, predictive service

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Pushing past the COVID recovery phase, we’re seeing even greater urgency for and adoption of digital service transformation. Research and trends back this up:

45%ofmanufacturersaredefin- ingavisionfortransformation

49%areinvestinginAIandadvanced analytics to design proactivecustomerservice

75%willupdateoperatingmodelswithIoT

37% already have diagnostic capabilitiesconnected to the service organization

Spotlight: Service is evolving from reactive to proactive

Digital transformation in service allows you to predict customer needs and automate service delivery, eliminating downtime and maximizing the value you create for your customers.

The chart above illustrates the evolution we see with many service organizations.

• Manymanufacturerserviceorgan-izations are still delivering service withabreak/fixorreactivemodelthatrequirescustomerstoidentifyandreportissues.Thisslowscust-omerproductivityandincreases

servicecosts.Andevenwhentechnologies are in place to capture servicerequests,schedulefieldserviceevents,andmanagerelatedinventory,theyareoftendiscon-nectedandplaguedbydataincon-sistencies.

• Otherserviceorganizationshavegraduated to an integrated suite ofapplicationsfrommultiplevendorstotakeamorepreventativeapproach.Andwhilethisimprovescustomerexperience,itcanalsocreateprocessfriction,inefficien-cies,andhigherservicecosts.

• However,agrowingnumberofmanufacturingserviceorganiza-tionsareembracingafullyunified,

end-to-endapproachtomanagingtheservicelifecycle—reaching theoptimalstateofpredictingandproactively addressing service disruptionsbeforetheyoccur.They’vedeployedcapabilitiessuchasartificiallyintelligentcustomerportalsandknowledgelibrariestotriggernext-bestactionsthathelpcustomersbecomebetterusers oftheirtechnology.Andsomemanufacturershaveprioritizedintegratingtheirsalesandmarket-ingsystemswithservicetodeliverrelevantcustomeroffersduringserviceappointmentsandprovidefieldtechnicianswithguidance andtoolstocompletenewsalesorcontractrenewalsduringtheiron-siteservice.

• Supporting service evolution of this magnitudewillrequireachange inorganizationalmindset.Butwebelievemanufacturersareatacriticalpointthatjustifiesthetransformation.Keyforcessuchasthegenerationalworkforceshift,theemergenceofnext-generationtechnicalcapabilities,andcustomerbuyingpreferencesupendingeconomicmodelsareconvergingand forcing the issue.


Reactive

SlowDisruptiveDisconnected

Preventative

BasicIne�cientCostly

Predictive

IntelligentAutomatedFrictionless

Revenue

Bespoke applications

Integrated suites

Uni�ed front- andback-o�ce

“Although the specter of disruption has been front and center in 2020, we do not believe that invalidates the manufacturing transformation journey that so many companies are pursuing—in fact, we think it justifies and accelerates it.”

Manufacturersfullyrecognizethatthesignificantshiftsinthecustomerrelationshipareacceleratingdigitaltransformationinitiativestomeetthemomentand prepare for the future.

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Three key ingredients for outcome-based service excellence

Tocapturepredictableservicerevenue,driverenewals,andexpandcustomerloyalty,organizations recognizetheneedforanenterpriseservicesolution.Basedonourexperienceworkingwithcustomers,we’vefoundthesethreekeyingredientsarecriticalfordeliveringserviceexcellence:

We’llexploreeachoftheseareasinmoredetail inthefollowingsections.Asaserviceleader,you’llquicklynotethatthisisnotanexhaustivelistofwhat’sneededtoexcelinanoutcome-centricmodel.Forexample,wewon’tcoverhowtoembedsmarttechnologyrequiredforIoTmonitoringororgan- iza-tionaldesignchangestosupportnewbusinessmodels.Instead,we’llfocusonthetechnologies,capabilities,andstrategiesthatwillhelpyoudeliverthebestpossibleoutcomesforyourcustomersandyourbusiness.

Seamless unification of customer, asset, process and

workflow data

Availability anytime, anywhere, on all

customer channels

A connected suite of capabilities that span the

service lifecycle

1 2 3

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Historically,onceasalewascomplete,servicewasthekeytodrivingcontinuedcustomersatisfaction,loyalty,andbrandadvocacy.Butformanufact- urerspivotingto“product-as-a-service”business models,serviceisnowalsocriticaltofinancialsuccess,specificallyrenewalsandupselling.

Tomeetcustomerdemandswhileincreasingshareholdervalue,outcome-centricserviceorganizationsneedtoequiptheirteamswithafullrangeofconnectedsalesandsupportcapabilities.Moreover,inourdigital-firstworld,anomni-channel approach ensures that your agents can handlecustomerinquiries,issues,andnew salesopportunitiesquicklyandefficientlywhiledelightingcustomersateverystep.

These capabilities include: (see diagram)

• Servicerequestsandcasemanagement

• Contracts,warranties,subscriptionmanagement

• Field service planning and execution

• Service inventory and logistics

• Digitalpromotionsandordermanagement

• Billingandpaymentmanagement

Billing and payment management

Determine billable items

Determine warranty coverage o�sets

Generate invoice

Digital promotion andorder management

Install base sales and marketing execution

Digital commerce portal

Con�gure, price,quote and book

Solutions

Subscriptions

Parts

Contracts

Contract, warranty and subscription management

Manage product coverage

Ensure contract compliance

Capture and manage warranty claims

Service request and case management

Field service planning and execution management

Manage, schedule, route andoptimize your �eld service workforce

Manage and execute complexprojects and installations

Optimize partner resources

Service inventory and logistics management

Optimize resource alignment

Returns, advanced exchange and claims

Manage repair depot operations

Manage service cost, claims, returns se�lement

Manage service partners

Manage activities, service requests, work orders and cases

Manage service parts

Manage returns logistics and disposition

A connected suite of capabilities that span the service lifecycle

1.

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Capabilities overview

• Service request and case management managesservicerequests,workorders,andcases.Whenunifiedwiththerestoftheservicelifecycle,serviceagentscanquicklyandefficientlyresolveissueswithfullvisibilitytoalltouchpointsofacustomer’sservicejourney.Digitaltools,suchasself-service,chatbots,andvirtualassistants,deflectminorserviceissues soagentscanfocusonspecific,high-valuecustomerinteractions.Additionally,embedded AIcapabilitiesincreasethespeedofresolutionsthroughpatterndetectionandbysurfacingrecommendedactions.

• Contract, warranty, and subscription management managesproductcoverage,confirmscontractcompliance,andcapturesandmanageswarrantyclaims.Customersatisfactionincreasesbecausepartners,employees,and evencustomersthemselvescanvalidatewarrantycoverageandentitlementsbeforeservicehas tohappen.Paymentsarecapturedforservicesprovided.BusinessescandrivenewrevenuestreamswithAI-poweredrecommendationsforselling,delivering,andrenewingcontract-basedofferingsandsubscriptions.Toolsthatintel-ligentlyprocesswarrantyclaimsoffergreaterefficiencyandfocusresourcesonclaimswith ahigherlikelihoodoffraud-reducingrevenueleakage,optimizingwarrantyreserves,andimprovingsupplierrecovery.

• Field service planning and executionautomateshowyoumanage,schedule,route,andoptimizeyourmobileworkforce,aswellasmakethebestuseofpartnerresources.Withrobustmobilitytools,fieldtechnicianscanresolveissuesquicklyandintelligentlyupsell,cross-sell,andrenewsubscriptions.Yourdispatchorserviceteamleadersalsobenefitfromareal-timeviewoftheir techniciansinthefieldandcanefficientlyhandleunplannedoremergencywork.Thisservicecomponentshouldalsoconnecttoyoursupplychaintoensureallneededpartsareinstockatthe right locations and on technicians’ vehicles.

• Service inventory and logistics management capturesservicecostsandmanagesserviceparts,returnslogistics,disposition,andrepairdepotoperations.Withthisfunctionality,businessescaneasilycheckpartavailabilityandorderserviceparts,allfromwithinaServiceRequest.Theycanalsomanagetechniciantruckinventorylevels toverifythecorrectpartsarealwaysavailable.What’smore,leveragingIoTandAIallowsservicerepstopivotawayfromreactiverepairstoproactivemaintenance.

• Digital promotions and order management includessalesandmarketingexecutionto currentcustomers,adigitalcommerceportal, andconfigure-price-quotesolutionstosupport subscriptions,parts,andcontracts.Tools inthiscategorysavecustomers,partners,andemployeestimesincetheycanusedigitalchannelstoautomatepurchases,facilitaterepeatorders,checkorderstatuses,initiatereturns, andcheckavailableinventory.Atypicalorderplatformcaptures,configures,prices,andchecksavailabilityacrossallchannelsandprovidesvariousfulfillmentoptions,includingdirectship,same-daypickup,same-daydeliverytoajobsite,orpickupfromachannelpartner.

• Billing and payment management identifiesbillableitems,determineswarrantycoverage offsets,andgeneratesinvoices.Organizationsreduceerrorsanddayssalesoutstanding(DSO)byconsumingpro-formainvoicesfromserviceoperationsandvalidatingagainstcontracts, warranty,subscription,regulations,revenue recognitionguidelines,andtaxlawstogenerateandissueafullcommercialinvoice.Asingleplatformsupportsbillingprocessesforacompany’smixedofferingsofproducts,services,andsubscriptions.Finally,real-timeinsightsmeasuretheperformanceofgoalsandrenewalrates.

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Whencustomersbuyproductsorneedsupport,theyexpectacohesiveexperience.Tomeetandexceedthisexpectation,servicemustbeembeddedineverythingyourcompanydoes.Thismeanstheentire organization needs to continuously consider howeachroleandfunctionimpactstheserviceexperienceandthecustomerrelationship.Theillustrationbelowshowshowmanytouchpointsandfunctionsneedtostayinsynctoensureaseamlesstransferofdatabetweenthem.

Toavoidfrustratingcustomersandexacerbatingfrictioninsideyourbusiness,manufacturersshouldseektobreakdownthewallsbetweenthefrontofficeandbackofficeateachstepintheservicelifecycle.Wefindthattakingahardlookat yourdata—howit’smanagedandsharedacross theorganization—islikelythemostcriticalsteptosuccessfulbusinesstransformation.

Whenserviceoperationsaretiedtoaglobaldatamanagementstrategy,itbecomesmucheasier toshiftfromreactivetoproactive,automatingprocessesandempoweringcustomerswithmoderndigital experiences.

It’salsoimportanttoachieveaholisticviewofcustomersbycombiningtheirdatafromallsystemsintoasinglecustomerprofile.Thisfocusedcustomerdatamanagementstrategyallowsyouto:

1. Consolidate/centralizedatainonelocation— allaccounts,contacts,activities,leads,oppor-tunities,quotes,assets,andothercustomer-related data in one place

2. Ensureclean,accuratedataacrossprocesses,workflowsandapplications

3. Surfacecompletedatawhenandwhereit’sneededbyautomaticallyenrichingandextend-ingyourfirst-partycustomerdatawiththird-party data

4. Reduceprocessfrictionandimproveoperationalefficiencybycoordinatingwhatyouknowaboutyourcustomer—todelivera360-degreeview ofcustomersacrossmarketing,sales,service,CPQ,commerce,andERP

Proactive IoT Asset Monitoring

Knowledge Library

Field Service Maintenance,

Repair and Advice

Con�gure, Price and Quote

Seamless Invoicing

Manage Contract and Asset Lifecycle

Source and Order Parts

Customer Self-Service

Automated SR Logging

Why is digital service transformation so challenging?

Disconnected data and processes stand in the way

Unified front-and back-office systems, processes, and data

2.

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Thefinalcomponentofserviceexcellenceisavailability.Whetheryourequire24/7uptimeorhavespecificbusinesshours,it’scriticalthatemployees,partners,andcustomershaveaccesstoservicewhenever theyneedit,onwhateverchanneltheyuse.Thismeanstakinginventoryofyourcurrentservicecapabilitiestoplanfortheeventualmigrationtoaholisticenterpriseservicemanagementsystem.

Here are some considerations for your strategy

Includecustomerdatamanagement(CDM)tocollectvarious customerinformationelementsintouniversalidentifiers,while retaining the original data sources

Includeprocessautomationtoprovidebusinesseswithactionable insightandrapiditerationsofbusinessprocessmodel

EmbedAIandmachinelearning(ML)intheplatformtodeliver easyinsight,detection,automation,andexpertguidance

IncorporateIoTfunctionalitytoalloworganizationstoconnect, analyze,integrate,andlearndirectlyfromtheirproducts

Offerknowledgemanagementtoolstoimproveself-service capabilitiesandspeedtimetoresolutionbyallowingcustomers andserviceagentstofindanswersquickly,anytime,anywhere

Providecollaborationtoolstohelpstakeholdersconvenequickly todeterminethebestsolutions

Service availability anytime, anywhere, on all customer channels

3.

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A word about AI and machine learning

Applyingadvanceddatascienceandmachinelearningtoyourcompany’sdataallowsyoutoreact,learn, andadaptinrealtime.Italsogivesyoutherightinformation(fromhistoricalanddynamiccustomerdata, suchasclickstream,socialactivity,weather,look-alikeaudiences,IoT,andmore)todelivercustomizedinsightsacrossallofyourcustomer-facingactivitiesthatimprovewitheverycustomerinteraction.

The benefits reach across your organization.

1. Empower your marketing team

• Seewhencustomersreceivedmessages(andwhetherornottheyengaged)andusethatinformationtooptimizechannelandsendtime

• Separatemostactionablecustomerdataforintelligentmessagingthatconverts

• Determinethecontentofemailsatthetimeyourcustomeropensit,allowingyoutosendmorerelevantinformationandbuildlong-lastingrelationships

2. Connect the right audiences to campaigns for more personalized experiences optimize the selling process

• Offerguidancederivedfromopportunity analysisandaccountengagement

• Utilizesmartcallpoints

• Presenttherightofferand/ortakethenext-best salesaction—optimizedforeachcustomer

• Employleadscoringandlook-alikeaudiencemodels

3. Resolve customer issues faster (and smarter)

• Presentthenext-bestserviceactionin therightchannelattherighttime

• Deliverpredictiveproductfailure,predictive accounthealth,andpredictiverecommendations

• Utilizechatbot(andenhancedmobile,video, andsocialmessagingcapabilities)to provideautomatedanswersandinteractwith customersacrossavarietyofchannels

4. Deliver AI-powered digital commerce capabilities

• Providepersonalized,targetedproducts andcontentthatismostrelevanttoyour buyer’simmediateneeds

• Offersmartproductrecommendationsbased onaccountdata,third-partyshopperdata, andreal-timeinputs

• Includeintelligentsearchcapabilitiesthatcanunderstandcustomersandtheirrequirements

• Producecross-channelcontextual contentinrealtime

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The future of Service: Always on, predictive service

Ifthere’sonethingweknowaboutservice,whatworkstodaywon’tnecessarilyworktomorrow. Digitaltechnologies,media,content,anddatahavechangedboththecultureofserviceorganizationsandthedemandsofcustomers.Exceptionalservicehasbecometheexpectednorm,andwithitcomesthepowertoturnone-timecustomersintoloyaladvocatesforyourproducts,yourcompany,andyourbrand.

Digitalistheonlywaytomeetthesecontinuallychangingexpectationsforaround-the-clock

availability,real-timefulfillment,immediateaccesstoinformation,andpersonalized,proactiveservice—tonameafew.

Successfulorganizationswillbethosethatcansuccessfully execute their service strategy to transformtheiroperations.

Thetruthiscustomerexperience(CX)istheultimatebusinessdifferentiator.Organizationsthatelevateafter-salesserviceaspartoftheircustomerexperiencewillachieve:

Increasedservicecontractrenewals

Improvedsalesofmore aftermarketpartsandaccessories

Greaterincremental/upsell/cross-sellsales

Enhanced support for product-as-a-servicemodelsandrenewals

Increasedcustomerloyaltythanks totheirabilitytoproactivelyserve

theircustomersandimprove first-callresolutionsinthefield.

Greaterefficienciesandcostsavingsthroughbetter

managementofresources,inventory,andrepairdepots

Organizationsthatstayaheadofcustomerneedsandexpectationssetthemselvesupforsuccess.Andasharpcustomerfocus,deliveredthroughstate-of-the-artdigitaluserexperiences,enablesservicetoshiftfromacostcentertoaprofitable,revenuegeneratinglineofbusiness.

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Why choose Oracle for enterprise service management?

Serviceorganizationsareembracingdigitaltransformationtoincreaseefficiency,improvecustomerandemployeeexperiences,reduce costtoserve,andcapturenewpredictablerevenuestreams.

Whenitcomesdifferentiatingservice,onlyOracleprovidesacompleteplatformofcloudsolutionstosupporttheentireservicelifecycle.Youbenefit fromaseamlessconnectionacrossthefront-office,back-office,andthefieldensuringa360-degreeviewofcustomer,assetandprocessdatatoreducecosttoservewhileenablingproactiveserviceandmaintenanceacrossconnectedassets.Oraclehelpsyoucompletethedigitaltransformationonyourschedule,empoweringyourserviceorganizationtomakeeverycustomerinteractionmatter,whileprotectingandgrowingrevenue.

About Oracle Enterprise Service Management

Oracle’sEnterpriseServiceManagementsolutionprovidesmanufacturersaplatformtotransformtheiraftermarketserviceoperationsfromreactivetopredictivebyautomatingtheservicelifecycleandempoweringtheircustomerswithamoderndigitalexperience.Thisenablesmanufacturerstoshift tonewservicebusinessmodels,capturethenextwaveofrevenuegrowthandretaincustomersfor life.

Thesolutionprovidescriticalconnectionsbetweendata,workflows,assetsandserviceteamsincludingIoTmonitoringtodiagnoseproblems,self-healassets,ortriggerandmanageafieldserviceeventtoserviceinventoryandlogisticsmanagementtocontracts,warrantiesandsubscriptionstocommerce,quotingandsalesperformancemanagementtoenablefieldtechnicianstodriveadditionalrevenue.

Competitionistough.That’swhysomanycompaniesare elevatingtheirafter-salesserviceexperiencetostandout. Buttocreateanexceptionalexperience,youneedthe righttechnologyplatformtohelpyougetthere.Adigital, end-to-endsolutionthataddressesallserviceissues—effortlessforyourcustomerandunifiedforyourbrand.Startrealizingthebenefitsofloyalbrandambassadors,increasedupsellandcross-sellopportunities,anddecreasedcoststhroughimprovedefficiencieswithOracle.

Let’s get started


Three Key Ingredients for Outcome-based Service Excellence...contracts, warranties and subscriptions to commerce, quoting and sales performance management to enable field technicians

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