The Customer Service Journal
Volume 3 May, 2016
Bringing the world of customer service together
To introduce the Service Revenue Management section, a brief history lesson. The whole concept of service revenue for the high tech industry began with IBM. It was in the late 1960s or early in the 1970s that IBM started to charge for maintenance of its computers. Prior to that maintenance costs were a part of the licensing revenue. The rest of the computer industry, also known as the bunch (Burroughs, Univac, NCR, it's CDC, and Honeywell) soon followed. This was the start of customer service being positioned as a profit center. Since then we have seen considerable changes in the industry with the evolution of service contracts, and now the monetization of other forms of recurring services.
In the world of warranty management the concept of extended warranties has taken the B2C business segments by storm. We believe that these extended warranties are in fact service contracts. We have elected to position this type of service revenue in the Warranty Section of the Journal. Therefore this section is devoted to the B2B business segments.
Due to the Cloud, the Internet of Things, and the marketing of services that are adjacent to a product, the role of the Channel Partner is evolving. The impact of this on processes, KPI's, and the OEMs capability to generate annuity revenue from services cannot be understated.
So we have come a long way since IBM first unbundled its maintenance services. It will be interesting to observe and take part in the Service Revenue Management changes that will be taking place in the coming years.
John "TJ" Thomann
© Customer Service Journal 2014, 2015, 2016 all rights reserved
The Customer Service Journal (CSJ) does not endorse any vendor, product or service described in its journal, The CSJ disclaims all warranties, expressed or implied, with respect to its research, including any warranties of merchantability or fitness for a particular purpose.