Uploaded on Feb 11, 2025
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Lifecycle Services Leveraging your service promise to drive performance and profits Presenters Adam Beckerman James Kirby Vice President, Service Advantage Ricoh Equipment Services & 215.439.8505 [email protected] Lifecycle Management Study John R. Brandt CEO, The MPI Group 216.991.8390 [email protected] Lifecycle Services 2 Are you ready? Ricoh Equipment Services & Lifecycle Management Study The Ricoh Equipment Services & Lifecycle Management Study collected responses from 131 companies in August 2023. Study findings represent a range of equipment manufacturing companies: • Location: 83% in the United States vs. 17% in Canada • Revenues: 61% of $500 million or less vs. 39% of more than $500 million • Top products: 37% provide equipment parts and 34% provide equipment • Top industries: 56% serve manufacturing, 20% retail, and 13% healthcare • Titles: 71% of respondents were senior-level executives Results from the research can help executives of equipment manufacturers understand the impact that equipment services can have on their companies’ abilities to achieve performance targets and growth. Note: Some charts and tables may not sum to 100% due to rounding or because multiple responses were allowed. Lifecycle Services 4 Today’s agenda • Customer equipment service needs • Equipment manufacturers’ Lifecycle Services • Challenges to growing lifecycle services • Benefits from Lifecycle Services • Case studies • Q&A Lifecycle Services 5 Customer equipment service needs Ricoh Equipment Services & Lifecycle Management Study Many factors negatively impact performance of installed equipment Improper opera... 40% Component breakd... 37% Improper installa... 34% Customer customizat... 33% Lack of routine/preventive mainten... 31% Environmental factors (e.g., humidity, poor ventilat... 28% Electrical fail... 27% Material corrosion and fat... 24% Ove 24% Software failures/... 24% Incompatible parts replace... 18% Lubricant l... 18% Poor documentation and record-kee... 15% Thermal da... 15% Multiple responses possible Lubricant contamina... 11% Ot 0% None of t... 5% Lifecycle Services 7 Ricoh Equipment Services & Lifecycle Management Study Negative impact to customers and revenues drive use of lifecycle services Equipment problems negatively impact their customers' access to goods or serv... 44% Customers lack inhouse maintenance skills/ta... 43% Equipment problems negatively impact their revenues and/or profitabi... 40% Equipment problems negatively impact their employee or customer sa... 33% Difficulty keeping up with frequent product changes or user adoption challe... 31% Equipment technologies change too rapidly for customers' maintenance staff to kee... 17% Ot 0% None of t... 2% Multiple responses possible Lifecycle Services 8 Ricoh Equipment Services & Lifecycle Management Study 5% More than $1 million (2%) A majority of 21% $501,000 to $1 million customers lose more $250,001 to $500,00030% than $100,000 $100,001 to $250,000 per hour due 31% $10,000 to $100,000 to downtime Less than $10,000 per hour 12% Lifecycle Services 9 RICOH CASE STUDY Ricoh addresses challenges of xxxxxx equipment manufacturer Ricoh addresses challenges of xxxxxx equipment manufacturer Lifecycle Services 10 Equipment manufacturers’ Lifecycle Services 1 1 Ricoh Equipment Services & Lifecycle Management Study Equipment sales account for the highest percentage of company revenue 35% 30% 26% 20% 23% 25% 16% 10% Average Median Lifecycle Services 12 Ricoh Equipment Services & Lifecycle Management Study A majority of equipment manufacturers offer comprehensive lifecycle services — e.g., training, provisioning and set up, repair (break/fix) maintenance, preventive maintenance, parts and reverse logistics, level 1 and 2 support — to less than half of customers 8% 20% 20% 14% 9% 12% 5% 8% 2%1%2% 10% or less (0%) 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-99% 100% Answered only by respondents with sales of lifecycle services. Lifecycle Services 13 Ricoh Equipment Services & Lifecycle Management Study Equipment installation is the service most likely to be offered Equipment installation and s... 61% Help desk call sup... 52% Preventive mainten... 51% Workflow develop... 49% Customer training and documenta... 42% Repair (break/fix) mainten... 40% Site survey and equipment consul... 39% Warranty repairs and excha... 38% Spare parts and supply/consumable inventory manage... 35% Real-time equipment monito... 32% Remote engineering sup... 32% Onsite program manage... 30% Managed services (please speci... 2% Multiple responses possible Answered only by respondents Ot 0% with sales of lifecycle services. None of t... 1% Lifecycle Services 14 Ricoh Equipment Services & Lifecycle Management Study 3% 7% More than $50 billion (1%) 17% $25 billion to $50 billion Many companies $10 billion to $25 billion have installed 30% bases worth more $1 billion to $10 billion than $500 million $501 million to $1 billion 28% $101 million to $500 million 15% Less than $100 million Lifecycle Services 15 RICOH CASE STUDY Ricoh addresses challenges of xxxxxx equipment manufacturer Ricoh addresses challenges of xxxxxx equipment manufacturer Lifecycle Services 16 Challenges to growing Lifecycle Services 1 7 Ricoh Equipment Services & Lifecycle Management Study Cost is the top constraint for customer adoption of new technologies Cost of new technolo... 49% Integrating new technologies with existing equip... 37% Complexity of new technolo... 33% Integrating new technologies into existing business sys... 28% Inability to customize new technolo... 27% Concern about selection of the right new technolo... 26% Training staff to operate new technolo... 26% Potential equipment obsolesc... 22% Retaining employees who resist using new technolo... 18% O 0% None of t... 2% Multiple responses possible Lifecycle Services 18 Ricoh Equipment Services & Lifecycle Management Study Geographic breadth and parts management are top service challenges Geographic breadth of installed equipment ... 35% Maintaining optimal parts and supplies invento... 33% Costs to provide lifecycle service operat... 29% Lack of skills/talent — installation and integra... 27% Insufficient or no inhouse lifecycle services training pro... 25% Inability to scale lifecycle services with sales growth or geographic expan... 22% Lack of skills/talent — electromechanical technical sk... 22% Little or no communication with installed equipment base at custo... 22% Lack of confidence in first-time fix capabili... 17% Lack of skills/talent — customer service and sup... 16% Don't believe that lifecycle service can be profit... 15% Service outcomes not meeting customer expectat... 10% Ot 1% None of t... 5% Multiple responses possible Lifecycle Services 19 Ricoh Equipment Services & Lifecycle Management Study Most companies use third-party contractors for some lifecycle services work 0% 1-10% 2% 9% 12% Answered only by respondents with 11-20% 21-30%23% sales of lifecycle services. 23% 31-40% 41-50% 31% More than 50% (1%) Lifecycle Services 20 RICOH CASE STUDY Ricoh addresses challenges of xxxxxx equipment manufacturer Ricoh addresses challenges of xxxxxx equipment manufacturer Lifecycle Services 21 Benefits from Lifecycle Services 2 2 Ricoh Equipment Services & Lifecycle Management Study Lifecycle services improve performances for multiple metrics Customer satisfaction 36% 45% 13% 5% 1% Revenues 31% 52% 10% 6% 1% Profitability 30% 50% 13% 5% 2% Innovation capabilities 27% 36% 32% 5%0% Number of customers 27% 41% 20% 11% 1% Number of markets served 23% 42% 27% 5% 3% Significantly improved Somewhat improved No change Somewhat declined Significantly declined Answered only by respondents with sales of lifecycle services. Lifecycle Services 23 Ricoh Equipment Services & Lifecycle Management Study Equipment manufacturers that offer comprehensive lifecycle services to more than 50% of customers achieve better results in performances Significant performance Equipment manufacturers that provide improvements to ... comprehensive lifecycle services to more than Other equipment manufacturers50% of installed base Revenues 44% 25% Customer satisfaction 44% 33% Innovation capabilities 34% 24% Number of customers 34% 24% Number of markets served 34% 18% Profitability 31% 29% Lifecycle Services 24 Ricoh Equipment Services & Lifecycle Management Study Equipment manufacturers that offer comprehensive lifecycle services to more than 50% of customers achieve better results in metrics (averages) 73% Machine availability at customer sites 68% 77% Renewal rate for lifecycle services 70% 78% Customer retention Other equipment manufacturers 71% Lifecycle Services 25 Ricoh Equipment Services & Lifecycle Management Study Equipment manufacturers that offer comprehensive lifecycle services to more than 50% of customers are more likely to rely on third-party contractors for more than 20% of lifecycle services work Equipment manufacturers that provide comprehensive lifecycle services to more than 50% of installed base 53% Other equipment manufacturers 32% Lifecycle Services 26 RICOH CASE STUDY Ricoh addresses challenges of xxxxxx equipment manufacturer Ricoh addresses challenges of xxxxxx equipment manufacturer Lifecycle Services 27 Ricoh Service Advantage Delivers Results Are you ready? 2 8 Q&A Enter your questions in the Q&A or follow up with us at: Ricoh-usa.com Ricoh.ca Lifecycle Services 29
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