The Waking World of Warranty Management (Strategic Focus)

Content

• Overview
• Catalyst
• Summary
• Key Messages
  • Warranty management is becoming an increasingly important area of technology
  • There are a range of business drivers creating investment in warranty technology
  • A shift to warranty analytics is becoming increasingly apparent
  • Organizational dynamics play a major role within warranty strategies
  • Go to market strategies will need to be enhanced by technology vendors
• Table of Contents
• Table of figures
• Table of tables
• Market Opportunity
  • Warranty management is becoming an increasingly important area of technology
  • The introduction of the WCOR model will be a positive boost for the manufacturing industry
  • Warranty management is seen as a relatively untapped area of manufacturing
  • There is a shift away from systems developed in-house
  • Warranty management can have a varied definition
  • Warranty management fits nicely within the SCOR model
  • Claims processing is a vital component of warranty management
  • There are a range of business drivers creating investment in warranty technology
  • High warranty costs continue to hound manufacturers
  • Customer satisfaction remains a high priority for manufacturers
  • Legal liability is a constant issue for manufacturing companies
  • Regulatory requirements continue to increase within the manufacturing industry
  • Some manufacturers are looking to pass warranty costs on to suppliers
  • Enhancing product development remains a primary objective for manufacturing companies
  • Manufacturers are seeking to reduce claims fraud
  • The hunt for new revenue streams continues within manufacturing businesses
  • There are a number of inhibitors impacting warranty strategies
  • Some manufacturers are still focusing on ERP or in-house solutions
  • Siloed data, systems, and organizational units pose a huge problem for warranty initiatives
  • The revenue opportunity for warranty management solutions is growing
  • North America is the largest regional market
  • The discrete industry will dominate warranty management revenues
  • Automotive manufacturers will spend the most on warranty management solutions
• Technology evolution
  • A high adoption of in-house systems remains within the manufacturing industry
  • A shift to warranty analytics is becoming increasingly apparent
  • Previous customer analysis is a core analytics function
  • Previous product claims analysis assists manufacturers with product-specific issues
  • Customer satisfaction analysis can have a large impact within manufacturing organizations
  • Non-claims analysis is an important area as well
  • Tighter integration remains a key focus for warranty management technology vendors
  • ERP is seen as the essential integration point
  • CRM integration can directly affect customer satisfaction
  • SCM integration allows manufacturers to better assess the role of suppliers in warranty claims
  • SRM integration provides functionality for strategic sourcing and procurement
  • PLM integration helps manufacturers feed warranty data back into product development processes
  • Emergence of BPO solutions within the warranty management space
  • Customer Impact: Warranty derived efficiencies
  • Manufacturers are targeting specific pain points with warranty solutions
  • Improving warranty claims visibility is a key benefit of warranty technology
  • Warranty management solutions can assist manufacturers in reducing claims cycle times
  • Early warning functionality can be a major boost for manufacturing processes
  • Manufacturers can improve processes related to targeted recall strategies
  • Claiming warranty costs from suppliers is seen as a key financial benefit
  • Manufacturers can utilize warranty data to assist with procurement negotiations
  • Warranty management solutions are helping manufacturers with issue root cause analysis
  • Reducing warranty reserves through more advanced forecasting benefits manufacturers greatly
  • Warranty management solutions can help to support field service employees
  • Organizational dynamics play a major role within warranty strategies
  • An increasingly strategic view of warranty management is being adopted by manufacturing companies
  • Some manufacturers are establishing warranty taskforces
• Competitive Landscape
  • EDS
  • HP
  • Genpact
  • SAS
  • SAP
  • 4CS
  • Fulcrum Warranty Solutions
  • Lawson
• Go to Market
  • Vendors need to work on ERP integration but should not forget other systems
  • Targeting the line of business will yield most benefit for vendors
  • Vendors should offer a clearly defined solution for warranty management
  • Merger and acquisition should be a key consideration for vendors
  • The warranty management market will look very different in five years
• APPENDIX
  • Definitions
  • Companies included in US warranty management analysis
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Total claims paid by US manufacturers 2003-2007 ($bn)
  • Table 2: Total warranty accruals for US manufacturers 2003-2007 ($bn)
  • Table 3: Total warranty management technology expenditure 2006-2012 ($m)
  • Table 4: Total regional warranty management technology expenditure 2006-2012 ($m)
  • Table 5: Total industry warranty management technology expenditure 2006-2012 ($m)
  • Table 6: Total discrete warranty management technology expenditure 2006-2012 ($m)
  • Table 7: BPO revenue opportunity growth within manufacturing 2006-2012 ($bn)
  • Table 8: Companies included in US warranty management analysis
  • List of Figures
  • Figure 1: Warranty process priority within the SCOR model
  • Figure 2: The warranty process within manufacturing companies
  • Figure 3: Total claims paid by US manufacturers 2003-2007 ($bn)
  • Figure 4: Total warranty accruals for US manufacturers 2003-2007 ($bn)
  • Figure 5: Claims rate among 50 top US manufacturers 2005-2007
  • Figure 6: Total warranty management technology expenditure 2006-2012 ($m)
  • Figure 7: Total regional warranty management technology expenditure 2006-2012 ($m)
  • Figure 8: Total industry warranty management technology expenditure 2006-2012 ($m)
  • Figure 9: Total discrete warranty management technology expenditure 2006-2012 ($m)
  • Figure 10: Defining warranty analytics
  • Figure 11: Key warranty management integration requirements
  • Figure 12: BPO revenue opportunity growth within manufacturing 2006-2012 ($bn)
  • Figure 13: IT investment influencers within manufacturing companies
  • Figure 14: HP's approach to warranty business performance management
  • Figure 15: SAS's warranty analytics capabilities
  • Figure 16: 4CS's approach to warranty management