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Profitable profit growth through service excellence

On august 31st 2022, the onsite event "growth driver Service Excellence" took place at the Courtyard by Marriott in Zurich for the first time since COVID19. The topic of the event was the still increasing importance of the service business as driver for a profitable business growth. During one whole afternoon, service leaders and specialists from the industry got together with our experts Thomas Zellweger and Enrico Tumminaro and had the opportunity to share knowledge and experiences.   

The event started off with a presentation by Thomas Zellweger, CEO of Zellweger Management Consultants AG about "Service Excellence as growth driver". Thomas Zellweger pointed out how a high-performing service business on excellence level is an indispensable requirement to profitably develop and even defend the service business and with that, the company itself. Herby it is essential to consider, that the stakeholders putting pressure on the service business are diverse.

At the same time, the service business is changing drastically. Customers are no longer interested in the sole product but expect an all-in-one solution over the total lifecycle of the product. The line between the product and the service business slowly disappears. This leads to a decrease in the importance of the physical product and an increasing value of software, digital solutions, and services. Hence, a platform business is emerging in many industries. Hidden champions have long realized this and focus their innovation on business model innovation on the base of digital technologies.

However, to achieve sustainable profitable growth in the service business, all relevant growth drivers must be adressed. For this, especially the service portfolio must be aligned with the life and usage cycle of the product. In order to quickly identify market potential and effectively manage service sales, a 360° perspective on the customer is necessary. This enables an intelligent customer segmentation, the customer profiling. Additionally, valuable touchpoint data can be gathered.  

To sum up his presentation, Thomas Zellweger illustrated a renewed transformation approach. The service excellence transformation is more than just another optimisation project.

Thomas Zellweger

CEO,
Zellweger Management Consultants AG
 
 
 

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Enrico Tumminaro, EVP and Head of Global Service at Mikron Machining Solutions, then spoke about the successful "Service Excellence Transformation" in his company. He brought exciting practical insights. The "service excellence transformation" at Mikron Machining Solutions began 2015/16 with the first meeting of Enrico Tumminaro and Thomas Zellweger. It quickly became clear that the goals and ambitions set would not lead to the expected growth of the service business.

An extensive service excellence assessment validated this. Especially the data volume and quality did not meet the transparency necessary to support the required profitable growth. Based on this assessment, growth and optimisation potentials were quantified and a transformation roadmap with xx key initiatives was developed. For every initiative, a project charta considering priority, duration, responsibility, and a value- and cost quantification was elaborated.

Customer satisfaction and efficiency improvement were part of the daily work and reached a level, Mikron would not have dreamed of in 2015. Since the transformation, significant  sales growth growth has been achieved and the efficiency of the service departments has increased massively. Today, five service departments and several consolidated service partners work wolrdon creating value for Mikron's customers.

After these two interesting presentations, the event participants were able to exchange experiences and ask questions on the topic of "Service Excellence" in a breakout session moderated by Thomas Zellweger. A tasty aperitif rounded off the event and once again offered the opportunity for networking. We would like to thank all participants for attending the first onsite event of the year and are looking forward to the next event!

Enrico Tumminaro

EVP - Head of Global Service
Mikron Switzerland AG, Agno
Division Machining
 

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