Lenovo Group: Streamlining Worldwide Customer Service Operations with SAP CRM

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1 Lenovo Group: Streamlining Worldwide Customer Service Operations with SAP CRM Using the SAP Customer Relationship Management application, Lenovo Group Limited streamlined and consolidated its customer service business from disparately outsourced operations and systems to one of the world s largest customer service systems based on a single SAP software instance. Lenovo now provides world-class after-sales customer service more efficiently in global markets.

2 Company Lenovo Group Limited Headquarters Beijing, China Industry High tech Products and Services Personal computers and mobile Internet devices Employees 26,341 (September 2011) Revenue US$29.6 billion (March 2012) Web Site Partner SAP Consulting Business Transformation The company s top objectives Consolidate and in-source customer service operations to cut operating costs Streamline business processes and provide new capabilities Integrate customer service with the company s core strategic platform The resolution Implemented the SAP Customer Relationship Management application to build a worldwide customer service platform Standardized business processes Leveraged expertise from previous implementations for fast deployment The key benefits Reduced ratio of customer-service operating expenses to revenue while maintaining customer satisfaction level Unified business processes and increased visibility into business performance Gained capability and flexibility in service innovation for new offerings Read more Successfully implementing the CRM after-sales services functionality from SAP changed our mind-set. Now, our people are thinking of new services, new capabilities, and continuous improvements. Tom Capotosto, Vice President, Global Services, Lenovo Group Limited Top Benefits Achieved 17% Ratio of customer-service operating expense to revenue 130 Countries on the aftersales services platform 3 days to 3 seconds Reduction in cycle time for service order change See more metrics 2

3 The need to consolidate worldwide customer service operations Lenovo is a global, personal technology products company that develops, manufactures, and markets desktop, notebook, and tablet computers, workstations, servers, storage drives, mobile phones, IT management software, and other related products and services. Lenovo operates on six continents and has customers in over 160 countries customers with an ever-growing demand for efficient and effective after-sales service. Historically, Lenovo had a variety of services channels, including call centers, on-site services, depot services, and authorized warranty and service providers, along with hundreds of OEMs for service spare parts. This complex network posed a huge challenge to Lenovo s after-sales services business. In addition, Lenovo outsourced its after-sales services operations to IBM while focusing on product innovation and market development. Outsourcing had several disadvantages. First, operations management was decentralized across different regions, leading to inconsistent business processes. Second, spots of hierarchical subcontracting by the outsourcing service providers further complicated the information and process flows. Last, the decentralized operations ran on dispersed applications. All these led to higher operating costs compared to industry benchmarks, while also limiting flexibility in service product innovation, process optimization, and performance reporting. As Lenovo s business grew, consolidating the customer service operation onto a new centralized business model was imperative to lower operating costs, maintain customer service levels, and expand business capabilities. Lenovo s IT and business teams set out to achieve this ambitious goal. 3

4 The customer service solution that enables global operations Going with the after-sales service functionality in the SAP Customer Relationship Management (SAP CRM) application was a logical decision for Lenovo. Since acquiring IBM s PC division, Lenovo has used the SAP ERP and SAP CRM applications for global business operations such as sales and supply chain. So using SAP CRM for after-sales service fit with this existing IT strategy and architecture, with the obvious advantage of full integration with the SAP software backbone. SAP CRM also provides a rich set of functionality to fit the majority of Lenovo s business needs, such as integrated multichannel customer interaction, on-site and depot service scheduling and management, warranty and service provider management, and service parts management. Rolling out systems globally was not new for Lenovo, but this project, code-named Jade Dragon, was still ambitious in its goal of consolidating worldwide operations on a single platform. Based on experience with previous solutions, the Lenovo IT team worked with the SAP Services organization and other partners to design the blueprint. The project team decided to simplify the normal as-is mapping analysis because the processes and systems were so numerous. Instead, they moved quickly to the to-be design, saving considerable time and effort. A phased approach, which sequenced the whole project into four waves, ensured a smooth deployment by product groups and geographies. It took only one year for the Jade Dragon to fly, and it now serves customers in over 130 countries. SAP CRM has helped Lenovo provide enhanced business capabilities to our worldwide customer service operations and reduce operating costs without sacrificing our service level. Xiaoyu Liu; GM of Global Application Development, CIO/BT Organization; and VP, Lenovo Group Limited 4

5 New level of customer service operations across the board SAP CRM has taken Lenovo s customer service operations to a new level. It has streamlined and centralized operations worldwide, replacing hundreds of legacy applications and reducing the number of warranty and service providers. Insourcing services has helped lower the ratio of customer service expense to revenue by nearly 17%. Unified business processes bring greater efficiency and transparency. Automation has cut the time to process emergency orders from days to seconds. Integration among SAP solutions means service parts are ordered and delivered with full transparency. New business capabilities have been enabled for after-sales service. E-support has been rolled out as a new service channel, and order management functionality has greatly simplified sales of customer service offerings. Management visibility has also improved. Business analytics tools now monitor the performance of service providers, helping boost overall business performance. Key benefits 17% Ratio of customer-service operating expense to revenue ~200 Legacy systems replaced 130 Countries on the after-sales services platform ~50% Fewer warranty and service providers 3 days to 3 seconds Reduction in cycle time for service order change 5

6 Lenovo Group Serving customers anywhere, anytime Global markets change rapidly, and effective customer service remains a key success factor for any global company. Lenovo is confident that its unified yet flexible customer service solution can support the company s long-term growth and forward-looking business strategy. The customer service organization will continue to enhance its business capabilities, such as enriching e-support, enabling remote service, and expanding the services to additional products. Lenovo is on a journey to develop more products, enter more markets, and sell to more customer segments, and the customer service organization aims to satisfy the company s customers anywhere, anytime. CMP21461 (13/04) Copyright/Trademark Privacy Impressum 6