Why John is not amused and Jane is happy
Field Service is becoming increasingly more important. Companies are now “selling to serve”. When the client is being served the company gathers valuable information. This information can be used as a competitive advantage: “serve to sell”. Analysts expect the field service management market to grow from $1.76 billion in 2009 to $2.3 billion in 2014 for a compound annual growth rate of 5.6% percent.
Unfortunately, most service organisations are unable to achieve high enough quality and efficiency to benefit from this blooming market.
To help companies capitalise on these opportunities, Deloitte developed a Field Service Value Map. An integrated approach that is focused on improving revenue growth, operating margin and asset turns.
- Revenue growth can be accomplished by letting current revenue streams grow or by creating new revenue streams.
- Companies can boost their operating margin by focusing on higher margin products or by reducing the total cost of customer interactions.
- Asset turns can be improved by fine-tuning either inventory and order management costs or by reducing the total infrastructure costs.