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Leading the path to transparency and control over service and warranty  operations


The reduced price-points and increased volumes in sensor technology,mobile communications and  cloud-based access to data, big data and advanced analytics technologies have made totally new service concepts possible. Leading companies   are taking advantage of this and in many cases totally change the competitive environment.
There are technical challenges, however the biggest issues are in getting rid of the old thinking and figuring out the right business model and earnings logic for the new services.

Whilst looking at the new digital opportunities, many companies still struggle with the basic enablers to some extent. How well do you know, what is the configuration of the products you have sold, from which supplier batches did the components come from and what is the exact service level commitment in the related warranty or service contract? How well are you able to use this information in planning the sales of the next version upgrade or the next service visit?
Warranty cost is a significant factor for manufacturing companies, typically ranging from 1 to 4 % of company sales, and 5 to 25 % of company profits (or even more, sometimes being the factor between profitability and loss-making).
However, warranty is not only a cost item or a legal burden to be fulfilled, but also:
  • An important marketing tool to signal product reliability and quality
  • Potentially a significant source for additional revenues through different forms of extended warranties and service contracts
  • A tool to build longer customer relationships (through repeat purchase) and better customer satisfaction
  • An opportunity to obtain invaluable information on product reliability through warranty claims
  • A strategic element in new product development.
Reduce warranty cost
Warranty cost is a significant factor for manufacturing companies, typically ranging from 1 to 4 % of company sales, and 5 to 25 % of company profits (or even more, sometimes being the factor between profitability and loss-making).
Improve product quality
Use field failure information for rapid product issue detection, root-cause analysis, issue correction and preventing similar failures in the future.
Increase revenues
​Use extended warranties and maintenance service contracts to increase revenues, drive differentiation and product sales stability through continuous revenue streams.
Digitalize service operations
Explore digitalization opportunities for failure diagnostics, No Fault Found -reduction, maintenance optimization and new services and service business models.
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