Generally speaking service management is about meeting or exceeding customer needs as quickly and efficiently as possible. Business success has to do with Operational Excellence as well as traditional revenue minus cost equals profit. Traditional measures of business performance, such as costs, expenses, revenue, and margins do not tell the whole story in the service management industry. Operational Excellence is not quite understood and defined by these concepts.
One of the keys for a meaningfully transformational impact of a service management software solution implementation is understanding your operational goals and how to measure them. Let me offer an example: you have a service management business which provides maintenance and repairs to equipment which routinely runs 24 X 7 and for which downtime is critically expensive. It turns out that profit and losses are largely a function of machine availability. If the utilization of the machines falls below a threshold they will be running at a loss for the year. These losses may be too difficult to recoup via increases in volume or price. This defines how many discreet bulk commodity production businesses actually are. This presents a significant challenge to our business model, as our customers are critically dependent on the ability to keep their equipment running; any breakdowns or production stoppages must be responded to and addressed as fast as possible. The sole criteria for which our customers will judge us is time to get back on line. The cost of the repair is not nearly as significant as the time it takes to complete it. A service management solution for this service management business must support its critical business functions to repair their customer’s equipment as fast as possible. If it does not accurately measure and monitor response time and time until repair is completed there is no way this software can positively impact Operational Excellence for this business
Operational Excellence is enhanced by a service management solution in many areas including efficient workflow and functionality, accurate operational measurements and benchmarking, and effective reporting. A service management implementation which is focused on Operational Excellence will have much different goals than just mere functionality. Contact HSO to learn more today!