Getting to the “The One Number”, while tracking/reducing costs using Maximo for Service Provider
Sudhee Subrahmanya 06000095UG firstname.lastname@example.org | | Tags:  ibmsoftware eam service-provider service-management tivoli software assetmgmt ibmontwitter maximo ibmeam asset-management
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For an enterprise to become more efficient and profitable, tracking internal costs is very important. The services that are provided internally in a company are crucial to the overall efficiency of the company. Due to focus on core competency, services that are not considered ‘core’ may be outsourced to third party services vendors.
So the servicing of assets can be done by an internal department or another vendor as follows:
Whether one is an internal-service-providing department or an external services provider vendor – there is great pressure to keep costs down and provide excellent service.
service provider vendors provide services to their customers, it becomes
imperative that the service providers are able to make the experience of
providing services and billing the customer as easy and measurable as possible. The “experience” of providing services also
means that service providers provide a response in a predictable manner to the
service-requestor – this builds the confidence and loyalty between the service
provider and the service requestor.
There have been many studies on ‘loyalty’ and a question that is considered a very important aspect of loyalty is - “’customers’ willingness to recommend a product or service to someone else. In fact, in most of the industries that I studied, the percentage of customers who were enthusiastic enough to refer a friend or colleague —perhaps the strongest sign of customer loyalty—correlated directly with differences in growth rates among competitors”. (The One Number You Need to Grow - http://hbr.org/2003/12/the-one-number-you-need-to-grow/ar/1)
To make a person recommend a service to a friend, one would have to provide/deliver the service in an extremely competent manner. So this means that not only does the actual delivered service have to be good, but everything that goes with it from the initial call to the process and paperwork of delivering the service has to be very compelling and delight the customer. This is easier said than done, however. What can be done, is to make sure that managers put in place efficient processes to ensure service is delivered in a very precise and predictable manner.
Whether one is an internal Service Provider, or an external Service Provider Vendor, three important aspects that define the service delivery process are:
a) Making sure that there are agreements in place that describe services and costs.
b) Maintaining services at the appropriate level to meet agreements.
c) Providing a detailed list of the service provided with the billing
The various agreements could have complex rules on how the pricing works. For e.g. there could be rules based on volume, kind of services etc. These agreements also specify the services that are provided to each customer, the price charged for managing these assets, and for the individual maintenance activities performed for the customer. As maintenance activities are recorded, prices should be calculated based on the pricing rules of the customer agreement. As the costs of the activities are clearly, recorded, it is very important to bill the customer correctly so that there is no cause for confusion.
All enterprises, should evaluate internal process and how they cost and bill internal services. A system that provides a way for good internal services delivery and a way for understanding the costs will greatly help with reducing operating costs and thus increasing profitability. This is something that a Department Manager or Senior Executive would be delighted with – even as they delight the customer with their services and increase loyalty.
Note: For more information on leveraging Maximo for Service Providers please take a look at:
This posting was prepared with input from:
Product Architects, Maximo for Service Provider