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2012
®
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“Warranty Management:
3 questions ; 1 answered,
        2 to go”

      Gary Dietz, Principal
      Sudripto De, Principal
Today’s Discussion
                                      ®




 • 3 Warranty Management Questions
 • Finding And Harvesting The Value
 • When
 • Why
 • What
 • Summary
 • Questions
 • Infosys Today
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?
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
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.
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
“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
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
“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
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
“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)
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
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
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.
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
Contacts
  Gary Dietz, Principal
Gary_Dietz@infosys.com
  Sudripto De, Principal
Sudripto_De@infosys.com

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Warranty Management: 3 questions ; 1 answered, 2 to go

  • 2. ® “Warranty Management: 3 questions ; 1 answered, 2 to go” Gary Dietz, Principal Sudripto De, Principal
  • 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