Service lifecycle management

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:
* Workforce management
* Parts forecasting and planning
* Knowledge management
* Enterprise asset management
* Contract management
* Returns and repair management
* Reverse logistics
Distinction from Product Lifecycle Management (PLM)
Service lifecycle management differs from Product Lifecycle Management, 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.
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 agreements (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%

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