Service now! Time to wake up the sleeping giant - Bain & Company

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Figure 13: typical service growth road map Regional leadership Tools and infrastructure Sales management Today 2013 2014 2015 2016 Germany, USA, Brazil, China Maint. portfolio structure Service product development Note: Simplified figure for illustration Switzerland, UK, Australia, Spain, Finland, France Online ordering tool Dedicated service sales Harmonized CRM system Japan, Turkey, India Dedicated service R&D Service segmentation Value pricing Korea Global R&D service standards New contract model applied globally Global sales model Rollout redesigned products Service specific career plans Skill set definition Design for service anchored in R&D Service an attractive career track Service incentives Organization Operations Global Maint. systems Service footprint and delivery processes Transparency on service delivery roadblocks Service champion Service excellence standards in the industry Define next level full potential Achieving service excellence Global rollout of service excellence Defining service excellence Strategy and ops concepts established Source: Bain & Company 32 Service now! Time to wake up the sleeping giant
Conclusion achieving your service ambitions With public debt looming, currencies under pressure and the financial sector stretched, economic growth will remain volatile for many years to come. Most industrial goods manufacturers will continue to face difficult times in their traditional equipment business. Service is the most secure way to achieve growth with comparatively small investments and at a comparatively low risk. Depending on your industry segment and your aspirations, a service growth initiative can deliver stable revenue increases of 4% to 5% annually with a solid 15% profit margin – or it can enable a three- to fourfold expansion of your service business with profit margins of 25% or higher. Five steps help companies assess and exploit opportunities in the service business: Service now! Time to wake up the sleeping giant Assess your service potential Service is about creating value for others by extending the life of your equipment, enhancing the productivity of your customers or helping them to be more effective. An assessment of service potential starts by analyzing the total service market size according to equipment types and location, possible services and value creation. The potential for growing service lies in the difference between turnover and profits actually achieved and those you might realistically capture if the offering successfully anticipates the needs of customers. Stake out your service targets Service initiatives require a strategic board decision on the direction and size of the initiative required for exceptional growth. Experience shows that am- 33
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Page 5 and 6: Figure 1: Service the untapped pote
Page 7 and 8: Figure 2: there must be more, at be
Page 9 and 10: 2. Setting the right ambitious obje
Page 11 and 12: 3. Strategy development: Where to p
Page 13 and 14: Step 4 Taking risks and worries off
Page 15 and 16: Figure 5: product life-cycle servic
Page 17 and 18: Example: Making the most of technic
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Page 21 and 22: Figure 7: Stringent performance man
Page 23 and 24: Figure 8: build contracts strategic
Page 25 and 26: Figure 9: Service models must refle
Page 27 and 28: Spotlight: human resources - Invest
Page 29 and 30: Figure 12: Success factors for serv
Page 31: Spotlight: drawing up a systematic
Page 35 and 36: about the authorS Oliver Strähle i

Service now! Time to wake up the sleeping giant - Bain & Company

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