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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


the servicing of assets can be done by an internal department or another vendor
as follows:

  1. Internal Department – that
    services assets/facilities within the enterprise
  2. Service Provider Business –
    that manages assets/facilities for other enterprises

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.


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)




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




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.


The Service Provider should compile a detailed list of the charges that were
calculated for discrete maintenance activities, charges for asset management
based on the number and type of assets under management or the usage of assets,
and any retainer fees and miscellaneous fees.  After reviewing these charges and after any
adjustments the transactions should be sent into the accounting system




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:


Bo Batty (bbatty@us.ibm.com) & Thomas
Knowles (
tknowles@us.ibm.com) -


Product Architects,
Maximo for Service Provider

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