This document discusses how to ensure optimal value is harvested from warranty management programs through a three-phase process: 1) Find Value - identify where value will come from and how it will be created; 2) Design Value - ensure solutions are value-focused and embed value realization; 3) Capture Value - start capturing, measuring, and reporting value. Illustrative examples are provided for how to plan, prepare, capture, and track value generated in a warranty transformation project.
3. Today’s Discussion
®
• 3 Warranty Management Questions
• Finding And Harvesting The Value
• When
• Why
• What
• Summary
• Questions
• Infosys Today
4. Three Basic Warranty
Questions That Need Answers
®
• When did the problem occur?
• Why did the problem occur? ?
• What corrective actions are needed? ?
New Question: Where is the value? ?
Do we clearly understand how decisions made in our
processes, policies, procedures throughout our product
lifecycle before, during, and after the sale have impacted
warranty and VALUE?
5. In Our Experience, Making Business Value A
Priority Is The First Step To Ensuring The
Success Of Warranty Transformation Programs ®
Business Challenges How to Address
Value is not clearly • Quantify value potential
understood prior to and • Determine business processes to focus on
through the program • Identify changes needed to drive results
• Prioritize high value business requirements
Value does not drive solution
• Conduct cost benefit analysis on program
design projects
• Ensure value driven projects are tracked in a
Value is overlapping across mutually exclusive manner
programs • Create constant feedback loop to assess if
project value is on target
• Align metrics with individuals
• Secure stakeholder agreement and adoption of
No clear accountability for
how the program will be measured
achieving business results • Support program goals with data from value
analyses
• Ensure program value is monitored post-
Value is not tracked launch
throughout the program • Establish metrics agreed upon by all
stakeholders
6. A 3 Phase Process To Ensure Optimal Value Is
Harvested Can Be Used:
Find Value, Design Value, And Capture Value ®
Phase I Phase II Phase III
Find Value Design Value Capture Value
Ensure the solution is value focused and embed
Clearly identify where value will come from and Start capturing, measuring and reporting the
RATIONALE the realization of the value within the business
how it will be created value
strategy
• What are the objectives of this • What are the optimal “to-be”
transformation? • Are we on track to achieve value?
processes and systems?
QUESTIONS • What needs to change to be more • How best to track, report and
• How to make implementation more
TO BE competitive? resolve issues?
efficient and pain free?
ANSWERED
• What is the business case? • How to provide feedback for
• How do processes translate to
subsequent roll-outs?
• What are the process metrics? changes in systems and people?
Incorporate the value levers into the
Develop detailed business case, value Setup performance reporting and benefits
OUTPUT strategic agendas & detail how the value
diagrams & gain key stakeholder buy-in management
will be realize
Value Realization
The structured approach applied across the Domain Warranty
Processes will yield the greatest results.
7. An Example Brings To Life How A Tangible
Business Impact Can Be Achieved By Focusing
On Warranty Processes And Metrics ®
1 2
Financial Business Detailed Value
Case Diagrams and
Process Impacts
Defining process level 3 pain points, metrics, and fit / gap
3 Business Objective/ Level 0
Business
Level 1 Business
Level 3
Process
Metric
Value Financial
Objective Pain point Process As-Is To-Be Target Value
Process Impacted
Problem Part Return Lead
Long Lead Part Time Reduce 23-46
Reduce Detection &
Time Problem Claims Process Return Leadtime Warranty
Warranty Cost Elimination 30-60 7-14
Resolution Process 50-75% $ Days
Process days days
4 And translating the value-focused process analysis into…
System Configuration Logic Process Design Requirements – Business Initiatives, KPI
Prioritization and Rapid Prototyping Alignment. Organizational
Alignment, Target Setting
7
8. “W’ Factor-1:
When Transactional Information ®
The picture that now emerges is
1. Incomplete
2. Uncertain
We need better understanding and visibility
of our performance
9. When –Visibility Is Gained By Analyzing And
Defining Our Processes, Policies, Systems, Data,
Metrics ®
Your Warranty Processes • Transaction detected late in
lifecycle (IDC CMM Level 0,1)
• Little process definition,
integration, and analytics to
understand root cause
• Value is realized by the customer
and the dealer
• OEM cannot harvest remaining
value due to lack of deeper
understanding and visibility of
warranty performance
10. “W’ Factor -2:
Why Analysis & Forecasting ®
Unanswered
2
The size of the data is huge… but the
techniques are
1. Complex
2. Non-Standard
We have better understanding and visibility,
but lack consistency and best practices
11. Why –Structured Data Analysis Of Historical
Trends, Predictive Models, and Diagnostic Device
Integration Begin To Help Us Understand Why ®
Your Warranty Processes
• Some warranty process
standardization and integration
(IDC CMM Level 1,2)
• Establishing some best practices
and metrics
• Value is realized by the
customer and the dealer
• Additional value is realized by
OEM in pockets of excellence
• Lack of systemic and
sustainable resolution
• Value is not timely and
sustainable
12. “W’ Factor -3:
What Intelligence & Knowledge Base
®
Unanswered
3 What
The picture which now evolves is
1. Holistic
2. Clear
We have better understanding, visibility,
and best practices, but now need to
manage the business proactively (CPI)
13. What –Development Of Structured Knowledge,
New Business Rules, Mining Unstructured Data,
Improves Our Ability To Manage Proactively ®
Your Warranty Processes • Warranty processes standardized
and integrated across lifecycle
(IDC CMM Level 3,4)
• Advanced process analytics allow
harvesting of both internal and
external data
• Value is realized by the customer
and the dealer
• OEM can optimally harvest
remaining value across warranty
ecosystem due to process
standardization, integration,
analytics, KPIs, governance
• Entire value chain is now driven by
warranty intelligence, and best
practices
• Sustainable improvement realized
14. The Answer To The Questions!
Find and Harvest The True Value Across The
Entire Warranty Value Chain ®
Why Analysis & Forecasting
1.Structured Data Analysis of
historical trends
2.Predictive Models
3.Diagnostic device integration
Intelligence & Knowledge
What
1.Structured Knowledge Bank When Transaction Effectiveness
2.Unstructured Data-mining
3.Business rules Redesign
1.Systems Integration &
4.Dynamic logic adaptation
Automation
5.Master Data Governance
2.Data-flow traceability
3.Data-source & data-model
completeness
4.Collaboration Platform
5.Business Process
Streamlining; Outsourcing
Enterprises need to define and measure their warranty
performance by first understanding those processes, policies,
procedures that define the most value for them
15. In Summary, A Structured Process Can Help You
Ensure That True Value is Being Achieved: Find
Value, Design Value, and Capture Value ®
Phase I Phase II Phase III
Find Value Design Value Capture Value
Ensure the solution is value focused and embed
Clearly identify where value will come from and Start capturing, measuring and reporting the
RATIONALE the realization of the value within the business
how it will be created value
strategy
• What are the objectives of this • What are the optimal “to-be”
transformation? • Are we on track to achieve value?
processes and systems?
QUESTIONS • What needs to change to be more • How best to track, report and
• How to make implementation more
TO BE competitive? resolve issues?
efficient and pain free?
ANSWERED
• What is the business case? • How to provide feedback for
• How do processes translate to
subsequent roll-outs?
• What are the process metrics? changes in systems and people?
Incorporate the value levers into the
Develop detailed business case, value Setup performance reporting and
OUTPUT strategic agendas & detail how the
diagrams & gain key stakeholder buy-in benefits management
value will be realize
Value Realization
This structured type of approach applied across the Domain Warranty
Processes will yield the greatest results.
16. Illustrative Examples For a Project Team to
Plan, Prepare, Capture and Track the Value
Generated in a Warranty Transformation… ®
Phase I Phase II Phase III
Find Value Design Value Capture Value
Value Scan
Metrics Management
Identifies
Defines the
opportunities
performance
framework Benefits Tracking
Tracks and
Business Case reports
Decision Framework benefits
Quantifies Prioritizes
benefits vs. initiatives
costs
Value Audit
Value Diagram Value-enabled Solution Design Audits and
benchmarks
Simulates process
Provides
benefits of value
line of sight
change
for
business
savings
Enterprises and project teams should adopt and/or create the
appropriate templates that customize and fit their situations
17. Contacts
Gary Dietz, Principal
Gary_Dietz@infosys.com
Sudripto De, Principal
Sudripto_De@infosys.com