Service management is a crucial component for companies. It encompasses all processes required for the provision of services and plays an important role in a wide range of industries.
Service Management is very important for customer loyalty. Whether you produce kitchen appliances or machines, trade in products or work in information technology and communications electronics (ITC), every product needs its service.
Service Management starts after the sale of a product (or service) and accompanies it with your customer during its life cycle. The goal is a high product quality and thus to create customer loyalty.
Customers today do not just puchase products, they buy a benefit, such as the solution to a problem. Products alone often do not solve the problems. Experience shows that it depends on the advice, the accompanying and customer services, to stand out from the market entrants.
“The Purpose of Business is to Create and Keep a Customer.” Peter F. Drucker
What is service management and which processes are included?
Definition of service management
Service management refers to the coordination and integration of processes in order to provide high-quality services for customers. This includes the planning, control and optimisation of the services provided in order to meet customer requirements.
Service management also includes the recording and measurement of customer satisfaction, the identification of customer needs and requirements and the continuous improvement of service delivery. It also includes the management of resources, technologies and business processes to maximise the efficiency and effectiveness of service delivery. Organisations use service management to improve service quality, control costs and gain competitive advantage.
Understanding service management processes
Service management processes encompass the control and management of all service activities, including planning, delivery, execution and monitoring. This ensures service quality and efficiency while responding to customer requests and needs.
Service management processes can be divided into different categories, including
- Service Strategy: This involves setting goals and strategies for service management. The service manager must draw up a plan that shows how services can be improved and the business expanded.
- Service design: This process involves developing a detailed service design that fulfils customer expectations and requirements. Relevant processes and resources are also identified and allocated accordingly.
- Service Transition: This deals with the management and implementation of new or changed services in a live environment. It ensures that the changes introduced are efficient and effective and result in minimal disruption.
- Service Operation: This process is where the services are actually delivered. It deals with the day-to-day execution of service tasks, incident management, problem handling and maintaining service quality.
- Continual Service Improvement: This process aims to constantly improve service quality and efficiency by continuously looking for ways to improve.
These processes ensure that services meet customer needs and fulfil or even exceed customer expectations. The focus is always on the customer experience and customer satisfaction. The success of a service management process therefore depends above all on the ability to understand and fulfil the needs and expectations of customers.
Why are service management processes important for the company?
Service management processes are crucial to ensure optimal service quality, which in turn contributes to customer loyalty. Through efficient service management, organisations can increase customer satisfaction and ensure service continuity, leading to long-term benefits.
In addition, effective service management processes offer the following benefits for an organisation:
Process optimisation
With clear, well-defined processes, organisations can adapt and improve their services to increase efficiency and effectiveness.
Cost control
Effective service management helps to reduce or eliminate unexpected costs by minimising service defects and failures and eliminating their causes.
Quality improvement
By continuously evaluating and improving service processes, organisations can raise their service standards and achieve higher customer satisfaction.
Risk minimisation
By systematically controlling and monitoring service processes, companies can identify risks and develop customised risk mitigation strategies.
Better supplier management
Service management can help improve relationships with suppliers by clearly defining who does what and who is responsible for what.
Improved compliance
Service management processes can help companies meet legal and contractual requirements by ensuring that services are delivered in a standardised, repeatable way.
How can service management help to optimise customer satisfaction?
Increasing efficiency through service management
Service management optimises workflows and processes to ensure efficient services. By automating recurring tasks and implementing service level agreements, efficiency can be increased, which has a positive impact on customer satisfaction.
Service management also includes the provision of more appropriate tools and technologies to support service delivery. Efficient service management can help avoid wasted resources by accurately forecasting demand and effectively planning service delivery.
In addition, the use of data and analytics can be used to continuously improve and customise services. Service management also ensures that the services provided are transparent and measurable.
Service quality can also be improved through the implementation of efficient service management. From the customer's enquiry to the provision of the service, the entire process is controlled and monitored to ensure the highest quality at all times.
Service management also deals with change management to ensure that changes to services or infrastructures are implemented efficiently and with minimal impact on customers.
Service management also helps to increase customer satisfaction through efficient processes, transparency and monitoring. Both internal and external customers can thus obtain a clear overview of the services provided and the status of their enquiries or problems at all times.
Efficient service management helps organisations to focus on their core activities by making service operations smooth and effective. It reduces complexities and enables the organisation to deliver a better service experience while saving costs.
Ensuring good service delivery
Good service management ensures that the services offered fulfil the needs and requirements of customers. By managing and optimising service quality, companies can increase customer satisfaction and build long-term customer loyalty.
Automation and customer service
The automation of service processes enables companies to process customer enquiries efficiently and ensure fast and reliable customer service. By providing templates and guidelines, companies can improve service continuity and increase customer satisfaction.
How does IT service management differ from service management?
IT Service Management (ITSM) differs in some aspects from general Service Management (SM). While service management encompasses the broad discipline of managing any service within an organisation across a wide range of industries, ITSM focuses specifically on the delivery of IT services. ITSM encompasses the processes required to manage and deliver IT services that meet the business requirements of an organisation's IT infrastructure. This often includes processes that focus on IT problem resolution mechanisms, scalability and capacity management. On the other hand, service management also includes the performance of non-technological services and the strategic alignment of an organisation's overall service strategy, regardless of the type of services provided or the technology used. In summary, both disciplines can be orientated by a common goal of quality and service, but differ in their specific application and focus. It can also be said that ITSM is "included" in service management. In any case, a good service management solution offers this.
Implementation of IT service management
The implementation of IT service management enables companies to effectively manage and optimise their IT services. By integrating ITIL (IT Infrastructure Library), companies can continuously improve their service processes and maintain an efficient IT infrastructure.
Which frameworks and tools are suitable for service management?
Overview of common frameworks in service management
There are various frameworks such as ITIL, COBIT and ISO/IEC 20000 that support companies in introducing and optimising their service management. These frameworks offer proven methods and best practices for efficiently organising and continuously improving service processes.
ITIL
ITIL (Information Technology Infrastructure Library) is a comprehensive guide for the planning, provision and support of IT services in organisations. It offers proven best practices for IT service management in order to continuously improve the efficiency and quality of IT services. ITIL includes guidelines, processes, tools and roles to optimise the use of IT infrastructure.
ISO / IEC 20000
ISO/IEC 20000 is an internationally recognised standard for a Service Management System (SMS). It specifies requirements for the service provider for planning, setting up, implementing, operating, monitoring, reviewing, maintaining and improving an SMS. The requirements cover the design, transition, delivery and improvement of services to fulfil the agreed service requirements.
COBIT
COBIT (Control Objectives for Information and Related Technology) is a framework for the control and monitoring of information technology processes in organisations. It provides a set of best practices and guidelines to ensure that IT processes are efficient and secure. COBIT is often used to improve governance and compliance in IT systems.
CMMI-SVC
CMMI-SVC (CMMI for Services) is a framework that supports organisations in improving their service processes and optimising their services. It offers proven methods and best practices for service organisations to increase their efficiency and provide high-quality services. Organisations can use it to evaluate and improve their service performance.
FitSM
FitSM (Federated IT Service Management) is a standard for IT service management based on the needs of organisations with federated structures. It provides a framework for the management of IT services and supports the efficiency and quality of services, regardless of the size or scope of the organisation.
SIAM
SIAM (Service Integration and Management) is a framework developed to enable the effective integration of services from different suppliers. It provides best practices and processes to improve collaboration between different service providers and maximise overall performance. SIAM aims to reduce the complexity of service integration and ensure a consistent level of service.
In addition, organisations can integrate different frameworks, processes and standards into their service-oriented approach to meet different requirements.
Choosing the right service management tool
Choosing the right service management tool is critical to effective service delivery. Organisations can rely on powerful tools such as ServiceNow, BMC Remedy and EcholoN to automate, monitor and continuously improve their service processes.
Implementation of Enterprise Service Management
Implementing Enterprise Service Management (ESM) enables companies to integrate and optimise service processes across different departments. By managing services in a standardised way, companies can ensure efficient service delivery and a holistic view of their services.
How can service management be used across all industries?
Service management in different industries
Service management can be used in various industries such as healthcare, finance and IT to improve service quality and provide customer-centred services. Adapting service processes to the specific requirements of each industry enables companies to optimise their service delivery.
Field service management and service management processes
Field service management is an essential part of service management, especially in industries such as technology and manufacturing. By integrating service management processes, organisations can increase the efficiency of field service and ensure smooth service delivery in the field.
Company-wide service management optimisation
Companies can optimise service management across the enterprise by applying best practices from different industries and continuously improving service processes. The integration of ESM tools and the adaptation to industry-specific requirements enable companies to maximise service quality and increase customer satisfaction.
EcholoN - the service management solution
EcholoN centralises all information within your service management. You always keep an overview, as you have all processes and procedures under control.
EcholoN supports you in effectively managing your service activities (e.g. installations, customer advice or customer service) and responding professionally to customer enquiries.
Providing high-quality services can be difficult in many areas. With EcholoN, you have a solution at hand that frees up your employees' capacities by optimising workflows (e.g. through improved structures and response times). The result is a focus on first-class and automated customer service.
The aim is to accelerate the procedure for all services provided, to comply with internal SLAs (service contracts), to optimise the deployment planning of service personnel and to ensure a high level of availability. The customer benefit increases enormously due to the high efficiency. EcholoN simplifies implementation in every service area. With existing resources from each specialist area, hotline staff can, for example, react quickly to faults and provide support.
The modular concept of EcholoN
EcholoN covers various sub-areas in service management. In addition to common functions such as entering tickets and agreeing service contracts, the framework also offers product and device information for all devices used in service operations. Based on the specifications, staff can prepare for service provision, for example, by preparing spare parts and drawing on knowledge from previous assignments. Many interfaces to known software and hardware are already integrated.
Manage and process service orders
The foundation for an optimal service offer is the precise planning and handling of all service assignments.
EcholoN provides the order management with all required information centrally. Thus, for example, open service orders and service assignments or order times and used material are always at a glance.
The service is supported in the handling and coordination practically and reliably.
Mobile service use
Support the work of your service technicians in the field with the mobile application from EcholoN. Be it order time recording, material consumption or a digital service report. Everything can be done on site and returned to the system. Thus, the time-consuming subsequent recording of paper-based service reports is completely eliminated.
The browser-based online application can be used on any device thanks to the latest technology. Offline as a native app for iOS, Android and Windows operating systems
Equipment and device information accessible by mobile device
Devices or products (assets) managed in EcholoN are easily and clearly available for mobile service processing (asset management).
Information such as important documents or reports on previous service calls can be stored in the device file.
Customer administration made easy
With EcholoN you manage all relevant customer data. Companies, contacts and tasks are created and assigned with one click.
Powerful self-service portal
The EcholoN self-service portal has an integrated knowledge database, which is continuously improved by machine learning AI (artificial intelligence), among other things. The intelligent tool helps the service provider and, above all, the customer, because on the one hand, specialist and experience knowledge can be made available centrally and decentrally in the company, and on the other hand, customer enquiries can be answered more quickly and in a targeted manner.
Reasons for the EcholoN service management solution
Whether standard or individualized - your requirement is our benchmark
- Optimizing the control of maintenance, service and repair operations
- Increase customer satisfaction
- Faster response to requests
- Secure invoicing of all services
- Optimize the flow of information between the head office / dispatcher and customer service representatives
- Improve the recording and processing of customer-specific information
- Increase in sales by more satisfied customers