Drive Service Revenue Through Service Contract

  • by Priya Natarajan, Senior Consultant, Dustin Droz, Consultant
  • Dustin Droz, Consultants, BearingPoint Commercial Services SAP CRM Practice
  • Andrew Caldwell, Consultant
  • Nicolas Galassi, Business Analyst, BearingPoint Commercial Services SAP CRM Practice
  • January 15, 2009
Service contract management in SAP CRM 2007 can address the needs of many diverse service contract scenarios. The various applications of service contract management are useful for driving revenue in an increasingly service-oriented business environment. Find out what the key business drivers are for service contract management and learn about the different components that comprise it.
Key Concept

Service contract management helps you improve customer satisfaction and increase revenue through service processes via the provision of service level agreements, integration with installed bases, and determination of entitlement. It comprises warranty, point-of-sale, preventative maintenance, and blanket purchase order contracts. The features in service contract management enable you to perform the right service at the right time for your customers.

Service executives continuously watch their service revenues. One of the primary means by which service organizations drive service profitability is service contract management. By allowing efficient and effective creation, maintenance, and invoicing of service contracts, strong service contract management practices allow companies to differentiate their service delivery processes and increase customer retention.

In part one, we discussed how Installed Base Management serves as the foundation for a company's service delivery activities. Service contract management serves as the backbone by which the various customer service and support activities are connected into a single, integrated service life cycle.

We will cover the key capabilities of service contract management in SAP CRM 2007. In addition to discussing the core features of service contracts and contract processes, we will give insight into the application of service contract management in real-world scenarios and share tips based on our experience in designing and deploying service contract management.

Priya Natarajan

Priya Natarajan is a senior consultant with BearingPoint's Commercial Services SAP CRM Practice and has nine years of experience with SAP implementations. Priya has implemented service and sales projects in both SAP CRM and SAP ERP. Priya has been involved with implementations in the high-tech and retail industries and has participated in several service management strategy and business assessment projects.

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Dustin Droz

Dustin Droz is a consultant with BearingPoint’s Commercial Services SAP CRM Practice and has two years of experience with SAP implementations. Dustin has been involved in SAP CRM projects in the environmental control and high-tech industries, focusing on CRM service and sales. Prior to becoming a consultant, Dustin graduated summa cum laude from the SAP-integrated management information systems program at California State University, Chico. He and Lorena would like to offer special thanks to the members of the SAP CRM team led by Doug Hurley, managing director, at BearingPoint.

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Andrew Caldwell

Andrew Caldwell is a consultant with BearingPoint's Commercial Services SAP CRM Practice and has two years of experience with SAP implementations. He has been involved in SAP CRM projects in the high-tech industry, focusing on CRM Service and Partner Channel Management.

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Nicolas Galassi

Nicholas Galassi is a business analyst with BearingPoint's Commercial Services SAP CRM practice with two years of SAP experience. He has focused on CRM Service and SAP data archiving projects within the high-tech and life sciences industries. Before joining BearingPoint, Nicholas graduated magna cum laude from California State University, Chico, having focused on information systems management and organizational management.

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