September 30 - October 02, 2020
11am – 6pm ET
Research Brief: How Service Organizations are Defining SLAs to Deliver Outcomes as a Service and Meet Uptime Guarantees
Brought to you by WBR Insights
Field service organizations today are being forced to evaluate how they do business, based on changes in technology that in turn is enabling more flexible business models. Older concepts of service, where a manufacturer will sell a product and then provide service on it when it breaks are giving way to newer ideas such as the purchase of functionality via Outcomes as a Service. However, before service organizations can offer these products to their customers, they need to first develop the infrastructure and define the SLAs needed to meet customer obligations and the imperative to drive profitability.
Offering new functionality isn't simply a matter of seeking to maximize the profit potential presented by a more advanced business model; it's also becoming a critical part of responding to the pressures of the market. Respondents identified three features that over half agree are becoming pressure points that their customers demand.
Maximized product uptime guarantees and the delivery of outcomes as a service are both becoming increasingly significant offerings in the eyes of customers who prefer to pay for reliability and functionality over what they see as an outmoded idea of buying a product and then paying for service on that product over its lifecycle. Sensor based analytics are also growing in priority In order to support these new models, and provide greater value to the end-user. Sensors are needed to collect the data required to support maximized uptime--and can contribute to adding value back to end users as well via insight delivery.
The majority of respondents do not yet have the ability to support Outcomes as a Service, and are in the midst of long-range planning for the rollout of these options. A combined 26% will be able to support them by the end of this year, if they have not already implemented the option within their list of offerings. The takeaway is that there is still potential for respondents to earn the benefits of early adoption today, but this benefit will steadily fade to the point that within the next two years the industry will largely be acclimated to the model and those who have still not made steps to adapt will have fallen behind the curve.
The full results of this study, as well as analytic breakdowns of the findings and key recommendations will be available when Field Services publishes the full research report this May. Stay tuned for the release of other great content as part of our editorial calendar, now available in our content center!
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