With Aftermarket Services (AMS) rapidly becoming both a competitive differentiator and a growth mechanism, manufacturers would do well to shift to a service factory model, which can reduce service costs for AMS by 20% and increase service revenue by 25%.

1. © 2014 Copyright Genpact. All Rights Reserved.
aftermarket.services@genpact.com
Achieving “services” business process excellence:
Metrics-driven best practices and innovation

2. © 2014 Copyright Genpact. All Rights Reserved.
A Global Business Process Services Leader: Process
Transformation and Outsourcing, Analytics, Technology
We help leaders of some
of the largest enterprises
transform and run
their processes and
operations, including
the very complex and
industry-specific
What
we do
Unbiased, agile combination
of process science, related
technology and analytics limits
upfront costs and enhances
future adaptability
Right critical mass:
• we are large (64,000+ global
staff) but our solutions
appropriately flexible
• our top management is
directly involved in our client
partnerships
How
we do it
Our
impact
We help enterprises to be
more competitive by
becoming more
intelligent: adaptive,
innovative, globally
effective and connected…
…by enabling tighter
management of costs,
risks, regulations,
and supporting growth
The results: US$22B* of impact for 800+ global clients

3. © 2014 Copyright Genpact. All Rights Reserved.
Aftermarket Services: The “what,” “why,” and “how”
3
Service provided after the product purchase that is “devoted to
supporting customers in the usage and disposal of goods”
“THE WHAT”
Customer
Support
Product/Technical
Support
Repairs and
Maintenance
Product-related
Services
“THE WHY”
 Significant component of the economy
 Contributes 25% of revenues across U.S. manufacturers, and 40 to 50% of profits
 May generate twice as much profit as sales of original products
 Offers customers a continuous connection to the brand
 Can drive customer satisfaction and loyalty
 Can facilitate continuous improvement of product design and quality
 Can differentiate a company from its competitors
“THE HOW”
 Perceived as a business network process, particularly when the service is carried out by
different organizational partners
 Third parties may provide services that are
 Complementary (e.g., field assistance, customer care), or
 Competing (e.g., unauthorized sales and/or repair centers)
 Organizational partners should be chosen to provide consistent service
performance and the opportunity to control service output
 Service provision has become very complex due to advancing technologies and diversified
customer touch points and service delivery channels

4. © 2014 Copyright Genpact. All Rights Reserved.
Aftermarket Services: The value chain
4
• Contract
monitoring
• Contract
renewals
• Contact
center
• Product
support
/helpdesk
• Service parts
planning and
pricing
• Parts
fulfillment
support
• Field
service
support
• Remote
monitoring
• Warranty
claims
processing
• Warranty
supplier
recovery
• Operations
dashboard
and service /
cost analytics
• Installed base
management,
including IB
analytics
• Product
returns
support
Process
Interventions
ValueDriven
Service Growth
Enablement
Service Execution Support
Transaction Processing
& Reporting
Setup &
Planning
Service
Request
Management
Warranty
Management
Service
Fulfilment
Parts
Management
Service
Invoicing &
Reporting
Contract
Management
Product
Returns &
Refurbishing
• IB service
coverage %
• Cost per sale /
renewal
• Contract
profitability
• Response
time
• First call
resolution
• Remote
resolution %
• FE utilization
• On-time
delivery
• Back orders
• Cost of
reverse
logistics
• Repair TAT
• Claim to
recovery
TAT
• Analysis
accuracy

5. © 2014 Copyright Genpact. All Rights Reserved.
Did you know?
5
Centralizing the service support desk releases
20-25% of a field engineer’s capacity
Consolidation of field engineer dispatch and parts order teams
drives 15% savings
Dynamic forecasting and accurate triaging of parts result in a further
savings of up to 10%
Implementing contract pricing analytics helps identify key levers,
resulting in 10% increase in revenue
Installed base analytics increases service coverage, resulting in
15% incremental revenue
LEVERS IMPACTING
SERVICE COST
LEVERS IMPACTING
SERVICE REVENUE

6. © 2014 Copyright Genpact. All Rights Reserved.
Summary of key learnings based on client engagements
6
Service Request
Management
Setup & Planning
Service
Request Management
Contract
Management
Service
Fulfillment
Parts Order &
Logistics
 Service request creation on the correct
installed product leads to faster issue
resolution
Warranty
Management
Service
Invoicing &
Reporting
 Accurate contract coverage and
entitlements details ensure
adherence to contract terms and
higher CSAT
 N/A
 Correct parts pricing information in the
ERP results in accurate billing and
dispute resolution
 One-stop shop for the field admin support
activities with correct and updated
information impacts field utilization
and service quality
 Clearly detailed warranty coverage
details help to avoid over- or under-
billing due to lack of visibility
 Accurate warranty coverage start and end
dates produce faster claims processing
and avoid billing disputes
 Upgrading/removing “end of life”
products and parts from the contract
coverage reduces service costs and
leads to faster request closure
 Correct account details lower logistics
cost and helps to avoid revenue leakage
 Accurate details of parts (under warranty
and contract) reduce missed billing
opportunities and claims processing
time
 Correct reporting of all incidents leads to
improvement in the quality of
installed base data
 Allocation of field engineer
with correct skills ensures
faster response and resolution
time
 Correct parts ordering eliminates
the extra cost of transporting
parts back and dispatching new
ones
 Upfront information to the customer
avoids cases where a purchased
order is required for that service as
out-of-warranty coverage
 Service request creation on
correct customer IDs minimizes
incorrect billing

7. © 2014 Copyright Genpact. All Rights Reserved.© 2014 Copyright Genpact. All Rights Reserved. 7
Parts Management
Warranty
ManagementService Fulfilment
Service
Fulfillment
 Parts lead time and using preferred
vendors, when adhered to, reduces
inventory cost and parts fulfillment cycle
time
Warranty
Management
Service
Invoicing &
Reporting
 N/A  N/A
 Correct shipment method used as per
customer contract reduces shipment
costs
 Clearly defined workflows for the parts
return process leads to faster parts return
and supplier recovery
 Clear information from the field
engineer pertaining to customer
abuse can result in unnecessary parts
/ product audit and reduce invalid
warranty claims
 Timely service closure
documentation leads to faster
service revenue realization
 N/A
 Analytics on claims processed
can provide product improvement
ideas and new sales
opportunities
Insights and best practices for process interfaces
drive $$ impact
Summary of key learnings based on client engagements

8. © 2014 Copyright Genpact. All Rights Reserved.
Typically, 20%–25% of the service portfolio is below target margins and
service revenue yield on the installed base is just 3-5%*
8
Service Cost can be reduced by ~20%
by optimizing field operations, optimizing warranty payouts, and
driving supplier recovery
People
Impact:
$125 MM*
Parts
Impact:
$75 MM*
EfficiencyEffectiveness
• Accurate triage of parts across regions and
return processes can save 1-2%
• Dynamic forecasting and pooling of parts at
warehouses can save 2-3 % of parts costs
through lean inventory
• 10-15% of total warranty costs can be avoided
by auditing 50% claims through an audit
reasoning matrix
• Supplier warranty recoveries can increase by
an additional 10-15% through effectively
managing reverse logistics of parts under
warranty
• Consolidating field engineer support and
parts triaging teams saves ~15%
• Remote monitoring deployment reduces
emergency dispatches by 30%, saving ~5%
Warranty
Impact:
$50 MM*
Service Revenue can be improved 25%
by enhancing contract coverage and increasing installed base
yield
Capacity to
Deliver
Impact:
$150 MM*
Increase
Contract
Coverage
Impact:
$150 MM*
• Installed base analytics increases service
coverage, boosting incremental revenue by
15%
• Customer and product segmentation to
identify potential customers
• Part and component level segmentation
to expand service customer base
• Implementing contract pricing analytics
helps identify key levers, resulting in ~10%
incremental revenue
• Data-driven scientific inputs for pricing
• Accurate cost inputs
• Centralizing the service support desk frees
up ~10% of field engineer capacity
Extract
Contract
Value
Impact:
$110 MM*
*For large manufacturing organizations

9. © 2014 Copyright Genpact. All Rights Reserved.
Challenges to achieving $$ impact
9
 Lack of visibility into the installed base
data
 Low accuracy of the existing installed
base (IB)
 Growing market need to drive higher
contract coverage
 Lack of clarity in the “service products”
(contracts)
…driving service revenue …optimizing service cost
 Lack of visibility into Cost to Serve
 Broken link between customer contact and
service issue resolution
 Lack of standardized processes
 Significant parts availability/inventory
issues and field service responsiveness
issues
 Unclear job allocation and handoffs
 Lack of visibility into KPI/metrics to measure process efficiency and effectiveness
Key Industry Challenges In…

10. © 2014 Copyright Genpact. All Rights Reserved.
Multiple missing links are an opportunity for value creation
Highly
disaggregated
and broken
processes,
leading to unclear
handoffs
Service businesses
financially
challenged by
Brands’ service
organizations unable to
commit and execute
service levels
Brands unable to drive
Service Excellence and
Customer Confidence
Result
Service Growth Enablement Service Execution Support
Transaction Processing and
Reporting
Setup &
Planning
Service
Request
Management
Warranty Claim
Management
Parts
Management
Service
Fulfilment
Service
Reporting &
Analytics
Contract
Management
Returns &
Recovery
XX X XX
10

11. © 2014 Copyright Genpact. All Rights Reserved.
A metrics-driven execution approach is needed
11
Efficiency
Metrics
Effectiveness
Metrics
Effectiveness Levers
Affecting BOs
• Field response TAT
• Parts OTIF
Service
Execution:
Issue resolution
% Reduction of service
requests on hold for parts
Improved productivity %
Point-in-time savings
Improved resolution %
Sustained savings growth
Integrated call field parts
Process & Execution
• IB coverage
• Contract profitability
Integrated IB and Contracts
Process & Execution
Service Growth
Enablement::
Contract and IB
expansion
• IB accuracy
• Contract
Renewal/expansion Rate
Service requests requiring parts to complete transaction range from
28% to 73%; manufacturing industry median: 43%*
Effectiveness drives much bigger impact than efficiency
Interplay of “smarter” processes, people, and technology is the key enabler
Service Factory:
Integrated process and
execution
*Source: Blumberg Report

12. © 2014 Copyright Genpact. All Rights Reserved.
Building blocks of an executed innovation approach
12
Technology as a Key Enabler
Creating a Service Delivery Model
1
 Centralize service support to impact
service revenue and cost
 Decouple similar processes and
consolidate them
 Establish a seamless linkage between
customer contact and service issue
resolution
2
Institutionalizing KPIs and
Creating Next Generation Processes
3
 Connect business-level KPIs to
operational KPIs
 Provide visibility into L2 and L3 process
measurement metrics
 Explore inter-linkages between business
outcomes and process metrics

13. © 2014 Copyright Genpact. All Rights Reserved.
Intervention 1: Create a service delivery model
Centralized support platform: People and process
13

14. © 2014 Copyright Genpact. All Rights Reserved.
Decouple, consolidate, and centralize
14
Field Service Parts Management
FE scheduling
Dispatch
creation
Field
repair
Manage and
track field
parts
Parts ordering Tools sourcing
Manage field
returns
FE debrief
Field admin &
support tasks
Field service
metrics
reporting
Invoicing audit
Update FE
availability
calendar
Parts
logistics
Order receipt
Estimate and
promise
delivery date
Order
entry
Follow-up for
back orders
Shipment
tracking
Parts returns
Parts
expediting
Global order
triage
Parts planning
Scrap
management
Field parts
management
Centralized support
platform
Apply Lean/Six Sigma
principles
Establish link with local
physical execution
Field admin time vs. wrench time Parts velocity vs. fulfillment support costs

15. © 2014 Copyright Genpact. All Rights Reserved.
Intervention 2: Technology as a key enabler
15
Tight integration of
technology with
process and people
will drive “Realized
Benefits”
Technology is outshining human
collaboration and communication but
provides only
“Potential Benefits”
PROCESS
TECHNOLOGY
PEOPLE

16. © 2014 Copyright Genpact. All Rights Reserved.
Intervention 3: Institute KPIs centrally and create next
generation processes
16
ILLUSTRATIVE
Request to Repair (R2R) Business Outcomes:
 Cost of Service
 Service Revenue
 Customer Loyalty
Service
Fulfillment
Warranty
Management
Parts Order
& Logistics
Setup &
Planning
Service
Invoicing &
Reporting
Service
Request
Management
Contract
Management
Level 2
Sub-process
Key
Performance
Measures
Level 3
Activities
Key
Performance
Measures
Level 1
SEPSM
Handle field
admin and
support tasks
Fix problems
remotely
Re-order/correct/
place new parts
orders
Tools
scheduling and
fulfilment
Service Provision & Field Support
Coordinate and
expedite with
service vendors
Complete field
service report
after FE debrief
• FE utilization
• Support cost per repair
• Fulfillment TAT
• Remote
Resolution %
• Resolution TAT
• First time fixed
right
percentage
• TAT
• Answer Rate
• Accuracy
• First Time
Response
• Order Accuracy
• TAT
• Back order %age
• TAT
• Availability %
• Tools calibration
percentage
• TAT
• Compliance %
• Debriefing
Accuracy
• Missed billing $

17. © 2014 Copyright Genpact. All Rights Reserved.
Establish linkages between performance measures and process
outcomes
17
NOT EXHAUSTIVE
Max
Minimum
Median
Key Business Outcomes
Field
engineer
utilization
%
30 79
59
Key Performance
Drivers
% Asset
remotely
connected*
21 100
83
First time fix
rate %
27 86
66
On-time parts
delivery % 81 96
89
First time part
fill rate%
Work orders
completed late
%
% Back orders
TAT
compliance %
76
77
31 9
17
Deploy and
monitor
remotely
Field service
support
Key Performance MeasuresSub-processes Activities
Remote
resolution %
5 90
47
Fix problems
remotely
Available
capacity
Use analytical models for field
force forecasting and
scheduling
Wrench time
Dispatch the best-fit customer
engineer based on skills,
proximity, availability,
preference
Ensure service history records,
IB details, required parts/tools
info and other documentation is
provided to CE
Manage entire dispatch process
until closure and action on all
field support activities within
specified TAT
Expedite with logistics / 3PL
partner for on-time parts
deliveries onsite
Follow-up on open dispatch /
back-orders, handle exceptions,
liaise with vendors, etc. for
timely repair/deployment
82
IB accuracy %
Source: Aberdeen Service Management Benchmarks

18. © 2014 Copyright Genpact. All Rights Reserved.
Bring all critical components under one umbrella
Achieve visibility and control through the right combination of people, process
and technology, all at a common ‘workplace’
People
• Trained to
handle AMS
operations
• Consistency in
delivery
• Structured
interactions with
customers
Process
• Metrics-driven process measurement
• Well documented and consistent
operations
• Ensured business benefits, guaranteed
performance
• Predictable and reliable
Technology
• Proven platform
for managing
distributed AMS
operations
• Superior
visibility and
control
• ‘One Company’
approach
18

19. © 2014 Copyright Genpact. All Rights Reserved.
The Service factory model
A confluence of process, people, and technology
19
Centralized back end: Interplay of skilled people, smarter
processes, and integrated technology
Local execution of service
supported by a
 Common central support
platform
 Measurement system to
identify and link key
performance indicators
(KPIs) to business
objectives
Focus on realized
benefits

20. © 2014 Copyright Genpact. All Rights Reserved.
What do companies say about measuring KPIs?
20
“The more you start reporting KPIs the more people understand that we need a lot of
introspection regarding the right KPIs for the business
The KPI needs to be one that the board is using regularly to manage the business
Publishing the KPI gives it more exposure and makes people think harder about how
they can improve performance against that KPI”
An FTSE 100 Company
“Trying to distill common KPIs across diversified units was difficult but ultimately
enlightening……”
An FTSE 250 Company
Professor Sir Andrew Likierman
London Business School

21. © 2014 Copyright Genpact. All Rights Reserved.
You can't manage what you don't measure
21
Based on our experience of working with multiple clients from
different industry domains, we strongly believe that:
Many important and “relevant” process KPIs are NOT measured by organizations
The majority of KPIs that do get measured are NOT used for any analysis
Organizations usually focus on “outcome level” benchmarks and
DO NOT FOCUS on “process level metrics”
 After sales services provides:
 Important sources of competitive
advantage
 Opportunities to build market share and
profitability
 Companies are using multiple measures to
assess after-sales service performance
 Companies are differing in their usage of
service performance measure in both number
and variety
More research in service metrics and benchmarking is needed
given the relatively little published academic research on this subject

22. © 2014 Copyright Genpact. All Rights Reserved. 22
There is a need for “process level” benchmarking…
…which can be achieved through interaction and understanding at a
“process level” driven by leadership
“Services” is run and managed
CSL is the best platform to achieve this…
(with a worthy mix of industry leadership and
academicians)
“Services” is measured, driven, and strategized,
and therefore “led”
This will transform
the way

23. © 2014 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and
operations, including those that are complex and industry-specific. Our mission is to help clients become
more competitive by making their enterprises more intelligent through becoming more adaptive,
innovative, globally effective and connected to their own clients.
Genpact stands for Generating Impact – visible in tighter cost management as well as better management
of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune
Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes,
crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and
technology, which limits upfront investments and enhances future adaptability.
We have global critical mass – 62,000+ employees in 24 countries with key management and corporate
offices in New York City – while remaining flexible and collaborative, and a management team that drives
client partnerships personally.
Our history is unique – behind our single-minded passion for process and operational excellence is the
Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for
more than 15 years.
For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn.