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2012 ®
®
“Warranty Management: 3 questions ; 1 answered,
2 to go”
Gary Dietz, Principal
Sudripto De, Principal
®
Today’s Discussion
• 3 Warranty Management Questions • Finding And Harvesting The Value • When • Why • What • Summary • Questions • Infosys Today
®
• When did the problem occur?
• Why did the problem occur?
• What corrective actions are needed?
Do we clearly understand how decisions made in our processes, policies, procedures throughout our product lifecycle before, during, and after the sale have impacted warranty and VALUE?
New Question: Where is the value?
Three Basic Warranty Questions That Need Answers
?
?
?
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In Our Experience, Making Business Value A Priority Is The First Step To Ensuring The Success Of Warranty Transformation Programs
Business Challenges How to Address
Value is not clearly understood prior to and
through the program
• Quantify value potential • Determine business processes to focus on • Identify changes needed to drive results
Value does not drive solution design
• Prioritize high value business requirements • Conduct cost benefit analysis on program projects
Value is overlapping across programs
• Ensure value driven projects are tracked in a mutually exclusive manner
• Create constant feedback loop to assess if project value is on target
No clear accountability for achieving business results
• Align metrics with individuals • Secure stakeholder agreement and adoption of how the program will be measured
• Support program goals with data from value analyses
Value is not tracked throughout the program
• Ensure program value is monitored post-launch
• Establish metrics agreed upon by all stakeholders
®
A 3 Phase Process To Ensure Optimal Value Is Harvested Can Be Used: Find Value, Design Value, And Capture Value
Value Realization
• What are the objectives of this
transformation?
• What needs to change to be more
competitive?
• What is the business case?
• What are the process metrics?
Phase I
Find Value
• What are the optimal “to-be”
processes and systems?
• How to make implementation more
efficient and pain free?
• How do processes translate to
changes in systems and people?
Phase II
Design Value
• Are we on track to achieve value?
• How best to track, report and
resolve issues?
• How to provide feedback for
subsequent roll-outs?
Phase III
Capture Value
Clearly identify where value will come from and
how it will be created
Ensure the solution is value focused and embed
the realization of the value within the business
strategy
Start capturing, measuring and reporting the
value
Develop detailed business case, value
diagrams & gain key stakeholder buy-in
Incorporate the value levers into the
strategic agendas & detail how the value
will be realize
Setup performance reporting and benefits
management
RATIONALE
QUESTIONS
TO BE
ANSWERED
OUTPUT
The structured approach applied across the Domain Warranty Processes will yield the greatest results.
®
7
Business
Objective
Objective/
Pain point
Level 0
Business
Process
Level 1 Business
Process
Level 3
Process
Impacted
Metric Value
Target
Financial
Value As-Is To-Be
Reduce
Warranty Cost
Long Lead
Time Problem
Resolution
Problem
Detection &
Elimination
Process
Claims Process
Part
Return
Process
Part Return Lead
Time Reduce
Leadtime
50-75%
23-46
Warranty
$ Days 30-60
days
7-14
days
Process Design Requirements –
Prioritization and Rapid Prototyping
System Configuration Logic Business Initiatives, KPI
Alignment. Organizational
Alignment, Target Setting
Defining process level 3 pain points, metrics, and fit / gap
And translating the value-focused process analysis into…
Detailed Value
Diagrams and
Process Impacts
Financial Business
Case
1 2
3
4
An Example Brings To Life How A Tangible
Business Impact Can Be Achieved By Focusing
On Warranty Processes And Metrics
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“W’ Factor-1:
When Transactional Information
The picture that now emerges is 1. Incomplete 2. Uncertain
We need better understanding and visibility of our performance
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When –Visibility Is Gained By Analyzing And
Defining Our Processes, Policies, Systems, Data,
Metrics • Transaction detected late in
lifecycle (IDC CMM Level 0,1) • Little process definition,
integration, and analytics to understand root cause
• Value is realized by the customer and the dealer
• OEM cannot harvest remaining value due to lack of deeper understanding and visibility of warranty performance
Your Warranty Processes
®
“W’ Factor -2: Why Analysis & Forecasting
The size of the data is huge… but the techniques are
1. Complex 2. Non-Standard
We have better understanding and visibility, but lack consistency and best practices
Unanswered
2
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Why –Structured Data Analysis Of Historical Trends, Predictive Models, and Diagnostic Device Integration Begin To Help Us Understand Why
• Some warranty process
standardization and integration (IDC CMM Level 1,2)
• Establishing some best practices and metrics
• Value is realized by the customer and the dealer
• Additional value is realized by OEM in pockets of excellence
• Lack of systemic and sustainable resolution
• Value is not timely and sustainable
Your Warranty Processes
®
“W’ Factor -3: What Intelligence & Knowledge Base
Unanswered
3
What
The picture which now evolves is 1. Holistic 2. Clear
We have better understanding, visibility, and best practices, but now need to manage the business proactively (CPI)
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What –Development Of Structured Knowledge,
New Business Rules, Mining Unstructured Data,
Improves Our Ability To Manage Proactively • Warranty processes standardized
and integrated across lifecycle (IDC CMM Level 3,4)
• Advanced process analytics allow harvesting of both internal and external data
• Value is realized by the customer and the dealer
• OEM can optimally harvest remaining value across warranty ecosystem due to process standardization, integration, analytics, KPIs, governance
• Entire value chain is now driven by warranty intelligence, and best practices
• Sustainable improvement realized
Your Warranty Processes
®
The Answer To The Questions! Find and Harvest The True Value Across The Entire Warranty Value Chain
Enterprises need to define and measure their warranty performance by first understanding those processes, policies, procedures that define the most value for them
1.Structured Data Analysis of historical trends
2.Predictive Models 3.Diagnostic device integration
Analysis & Forecasting
Transaction Effectiveness
Why
When What
1.Systems Integration & Automation
2.Data-flow traceability 3.Data-source & data-model
completeness 4.Collaboration Platform 5.Business Process
Streamlining; Outsourcing
1.Structured Knowledge Bank 2.Unstructured Data-mining 3.Business rules Redesign 4.Dynamic logic adaptation 5.Master Data Governance
Intelligence & Knowledge
®
In Summary, A Structured Process Can Help You Ensure That True Value is Being Achieved: Find Value, Design Value, and Capture Value
Value Realization
• What are the objectives of this
transformation?
• What needs to change to be more
competitive?
• What is the business case?
• What are the process metrics?
Phase I
Find Value
• What are the optimal “to-be”
processes and systems?
• How to make implementation more
efficient and pain free?
• How do processes translate to
changes in systems and people?
Phase II
Design Value
• Are we on track to achieve value?
• How best to track, report and
resolve issues?
• How to provide feedback for
subsequent roll-outs?
Phase III
Capture Value
Clearly identify where value will come from and
how it will be created
Ensure the solution is value focused and embed
the realization of the value within the business
strategy
Start capturing, measuring and reporting the
value
Develop detailed business case, value
diagrams & gain key stakeholder buy-in
Incorporate the value levers into the
strategic agendas & detail how the value will be realize
Setup performance reporting and
benefits management
RATIONALE
QUESTIONS
TO BE
ANSWERED
OUTPUT
This structured type of approach applied across the Domain Warranty Processes will yield the greatest results.
®
Illustrative Examples For a Project Team to Plan, Prepare, Capture and Track the Value Generated in a Warranty Transformation…
Phase I
Find Value
Phase II
Design Value
Phase III
Capture Value
Value Scan
Business Case
Value Diagram
Metrics Management
Decision Framework
Value-enabled Solution Design
Value Audit
Benefits Tracking
Identifies opportunities
Quantifies benefits vs. costs
Provides line of sight for business savings
Defines the performance framework
Simulates benefits of change
Prioritizes initiatives
Tracks and reports benefits
Audits and benchmarks process value
Enterprises and project teams should adopt and/or create the appropriate templates that customize and fit their situations
