See what CFOs are looking for from their service organizations in this webinar featuring Aly Pinder of Aberdeen Group and Rick Gustafson, CFO of ServiceMax

1. ServiceProfits & Raving Customers:
The CFOs Agenda in 2013

2. Speakers
AlyPinder
Sr. Research Analyst
Aberdeen Group
Rick Gustafson
CFO
ServiceMax

3. 4
Agenda
 Service Management Practice and Aberdeen Research
Framework
 Introduction to the Study
 Key Trends
 Service profitability
 Service margins vs. product margins
 The increased impact of service on financials
 Trends in service differentiation
 ServiceMax Field Service Overview
 Final Thoughts
 Q&A
Not for Distribution

4. 5
DomainExpertise
5
Supply Chain
Management
Global Supply
Management
Product
Innovation
and Engineering
Manufacturing
Enterprise
Applications
Customer
Management
Retail and
Banking
Service
Management
IT
Infrastructure
Human Capital
Management
Communications
Business
Intelligence
GRC/Financial
Management
IT Security
Not for Distribution

5. 6
Aberdeen Maturity Class Framework
 What are Best-in-Class companies
doing differently?
 What pitfalls are they avoiding?
 Why are they achieving greater
success?
 What technologies and services
are enabling them to succeed?
P
A
C
E
Pressures:
External forces that impact an organization’s market position,
competitiveness, or business operations.Pressures:
External forces that impact an organization’s market
position,
’
competitiveness, or business operations.
Actions:
The strategic approaches that an organization takes in
response to industry pressures.Actions:
The strategic approaches that an organization takes in
response to industry pressures.
Capabilities:
The business competencies (organization, process, etc…)
required to execute corporate strategy.Capabilities:
The business competencies (organization, process, etc…)
required to execute corporate strategy.
Enablers:
The key technology solutions required to support the
organization’s business practices.Enablers:
The key technology solutions required to support the
’organization’s business practices.
Selected Performance
Criteria (KPI)
Total
Respondents:
- Top 20%
- Middle 50%
- Bottom 30%
Respondents are scored
individually across KPI
Best-in-Class
Industry
Average
Laggard
Customer Satisfaction Rate
Service Revenue Change
Customer Retention Rate
Service Cost Change
Not for Distribution

6. 7
The Importance of Service Management
Objectives – To understand:
 State of Service
Management
 Best-in-Class Trends
 Key Challenges
 Impact on the Financials
 Top Performance
 Investments in Technology
 Profitability
 Differentiation
 Margin Disparity
Not for Distribution

7. 8
72%
24%
56%
38%
0%
20%
40%
60%
80%
Yes No
IsServiceRunasaProfitCenter,
PercentageofRespondents,n=138
Best-in-Class All Others
State of Service Management
Profit-centric View
Source: Aberdeen Group, December 2012
Not for Distribution

8. 9
Yes, 70%
No , 26%
Don't Know, 4%
In 2013, will Service be Managed as Profit
Center,Percentage of Respondents
State of Service Management
Cost vs. Profit-Center for 2013
Source: Aberdeen Group, December 2012
Not for Distribution

9. 10
Yes, 67%
No, 22%
Don't Know,
11%
Did service generate a profit in 2012, Percentage of Respondents, n =
138
State of Service Management
Profit Achieved in 2012
Source: Aberdeen Group, December 2012
Not for Distribution

10. 11
State of Service Management
Service Revenues Increase in 2013
Yes, 53%No, 28%
Don't Know,
14%
Anticipate service generating a greater proportion of
overall revenues in 2013, Percentage of Respondents, n =
138
Source: Aberdeen Group, December 2012
Not for Distribution

11. 12
40%
5%
23%
3%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Higher by
10% or more
Higher by
less than
10%
Same Lower by less
than 10%
Lower by
10% or more
Service Margins
vs. Product
Margins,
Percentage of
Respondents,
n=138
State of Service Management
Service Margins vs. Product Margins
Source: Aberdeen Group, December 2012
Not for Distribution

12. 13
Less, 51%
The Same, 18%
More, 8%
Don’t Know,
23%
Cost of Service vs. Cost of New Customer
AcquisitionPercentage of Respondents
State of Service Management
Cost of Service vs. Cost of New Customer Acquisition
Source: Aberdeen Group, December 2012
Not for Distribution

13. 14
Metrics
Average Result
Customer
Satisfaction
> 90%
Customer
Satisfaction
< 50%
Customer Retention 89% 48%
Customer Loyalty Score 77 32
Revenue Growth (Previous 12
Months)
3.7% -1.7%
Service Revenue Growth (Previous 12
Months)
6.1% -2.9%
State of Service Management
Link Between Customer Satisfaction and Loyalty / Revenue
Source: Aberdeen Group, December 2012
Not for Distribution

14. 15
 Top Goal
 Drive Service Revenue – 22%
 Enhance the Customer Experience – 17%
 Improve Customer Satisfaction – 13%
 Improve Customer Loyalty – 13%
 2nd Most Important Goal
 Drive Service Revenue – 23%
 Drive Service Resource Productivity / Utilization – 16%
Not for Distribution
State of Service Management
Goals
Source: Aberdeen Group, December 2012

15. 16
State of Service Management
Top Metrics Being Measured
Not for Distribution
Source: Aberdeen Group, December 2012
57% 57% 56%
40%
0%
10%
20%
30%
40%
50%
60%
Customer
Satisfaction
Service Revenue Service
Profitability
Service Costs
(Overall)
Topmetrics,PercentageofRespondents
n = 138

16. 17
State of Service Management
Service Roadblocks
Not for Distribution
Source: Aberdeen Group, December 2012
29%
32%
33%
33%
0% 10% 20% 30% 40%
Current technology infrastructure
is insufficient
Lack of budget for investment in
service
Economic concerns hindering
service business growth
Cost cutting initiatives take
precedent
Challenges, Percentage of Respondents, n = 138

17. Imagine Flawless Field Service
Perfect your service
delivery
Maximize your service
growth/revenue
Delight your customers

18. Flawless Field Service, End to End
The only complete field service solution.
Delivered in the cloud.

19. The Results?
We surveyed our customers to assess the true impact of ServiceMax

20. The Road to Service Delivery Perfection
We surveyed our customers to assess the true impact of ServiceMax
31%
14%
11%
16%
Productivity Service
revenue
First time fix
rates
Customer
Satisfaction
scores
-16% -16%
Field
service
costs
Average
time
to repair

21. ServiceMax Extends Salesforce Capabilities
ServiceMax transforms Service Cloud into a
complete Service Life Cycle solution
Sales
Cloud
Marketing
Cloud
Service Cloud
powered by

22. Summary
Grow Revenue
Perfect Service
Delivery
Delight
Customers
Technology Vision &
Field Service Expertise
Culture of
SuccessRealize Flawless Field Service

23. 24
Final Thoughts
Not for Distribution
 The Rise of Profits in Service
 Service Margins vs. Product Margins
 Service-centric Organization
 New Service and Services
 Focus on Current Customers, Avoid the Expense of New
Acquisition
 Delight the Customer and Find New Revenues
 Measure Profitability, Drive Customer Satisfaction
 IT Service Budget Increasing (or at least not in decline)
 But Service Still Needs More
 Insufficient Technology Infrastructure

24. Q&A
AlyPinder
aly.pinder@Aberdeen.com
@pinderjr
@Aberdeen_CESM
Rick Gustafson
Rick.gustafson@servicemax.com

25. Thank You!
www.servicemax.com