Wipro Looking Glass platform helped an OEM in construction equipment space increase service revenue and decrease cost of service operations by leveraging the power of machine data
A leading original construction equipment manufacturer, based out of the UK with around €6 billion in global revenue. With an employee base of over 12,000, the OEM's products reach markets in about 150 countries, leveraging its robust network of over 2,000 dealers. The OEM manufactures and services a range of over 300 machines and has a strong reputation for customer service.
In the construction equipment industry, product sales are linked to growth of the economy and the performance of the infrastructure sector. Competition and other macroeconomic price pressures have eroded product-based profit margins. Hence, leading manufacturers are leaning on their service organizations for revenue growth and also as a competitive differentiator. Top notch service ensures higher equipment uptime, which translates into more business. With the reducing cost of sensors and advancements in Internet of Things (IoT) technology, the construction equipment industry is constantly looking at innovative ways to use the power of machine data to create more value for the OEMs, partners and end customers.
The OEM’s dealers were losing service revenue to third-party service providers, leading to significant loss of profitability for both the dealers and the OEM. To maintain equipment uptime, the client and its dealers had to keep large inventory of spares, which translated into higher service cost. No remote visibility into an equipment’s operational parameters meant that the service model used was a traditional, break-fix model, where a technician is dispatched after an equipment failed. This led to higher equipment downtime and reduced efficiency of the service technician.