Service lifecycle management
Encyclopedia
Service lifecycle management (SLM) is defined by industry analyst firm AMR Research
and described as a holistic approach which helps service organizations better understand the revenue potential by looking at service opportunities proactively as a lifecycle rather than a single event or series of discrete events, combining all service-based operations into a single, albeit complex, set of workflows and connected business processes. SLM consists of the following key components:
, or PLM
, as it handles the "storage, manipulation, and rendering of electronic data" that manages business service instead of business product. Previously, software solutions for PLM and consultants viewed service as a product; however, SLM's distinction came into play once new browser technologies became heavily integrated with customer relations and service based tasks.
AMR Research
AMR Research, Inc. was an independent research firm, sold to Gartner Research for $64 million in 2009, which focused on the global supply chain and its supporting technologies...
and described as a holistic approach which helps service organizations better understand the revenue potential by looking at service opportunities proactively as a lifecycle rather than a single event or series of discrete events, combining all service-based operations into a single, albeit complex, set of workflows and connected business processes. SLM consists of the following key components:
- Workforce managementWorkforce managementWorkforce management encompasses all the activities needed to maintain a productive workforce. Sometimes referred to as HRMS systems, or even part of ERP systems...
- Parts forecasting and planning
- Knowledge managementKnowledge managementKnowledge management comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences...
- Enterprise asset managementEnterprise Asset ManagementEnterprise asset management means the whole life optimal management of the physical assets of an organization to maximize value. It covers such things as the design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities...
- Contract managementContract managementContract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and...
- Returns and repair management
- Reverse logisticsReverse logisticsReverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption...
Distinction from Product Lifecycle Management (PLM)
Service lifecycle management differs from Product Lifecycle ManagementProduct lifecycle management
In industry, product lifecycle management is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal...
, or PLM
Product lifecycle management
In industry, product lifecycle management is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal...
, as it handles the "storage, manipulation, and rendering of electronic data" that manages business service instead of business product. Previously, software solutions for PLM and consultants viewed service as a product; however, SLM's distinction came into play once new browser technologies became heavily integrated with customer relations and service based tasks.
Reasons for SLM
- Post-sale service represents a source of significant and sustained shareholder value
- Service drives customer satisfaction: those with higher customer satisfaction scores substantially outperformed the average S&P stock returns—while delivering less volatility and greater cash flows
- Leading service organizations have enjoyed nearly a 16% increase in net client value over a two year time frame
- Service level agreementService Level AgreementA service-level agreement is a part of a service contract where the level of service is formally defined. In practice, the term SLA is sometimes used to refer to the contracted delivery time or performance...
s (SLAs) are becoming more prevalent, and meeting and exceeding them is integral to profitability
Best practices
- Base the solution on a single leading-edge technology platform which seeks to optimize all service-based operations
- Leverage current technology, inventory, sourcing and staffing investments by utilizing a practical solution that is straightforward in implementation but yet flexible enough to handle a variety of service models
- Address process deficiencies before deploying technology
- Define requirements and success criteria clearly before evaluating technology solutions
- Leverage partnerships with service and logistics providers
- Attack aftermarket service as a top-line business opportunity
- Adopt a two-pronged approach to measuring the efficacy of aftermarket service: operational and strategic
- Adopt an enterprise-wide perspective
Results from SLM deployments
- Parts inventory reductions up to 40%
- Returns and repair turnaround time decreases up to 30%
- Warranty entitlements performance improvements up to 15%
- Pricing improvements which lead to gross profit increases up to 15%
- Increase technician “calls per day” volume by 25%
- Call center productivity improvements up to 40%