Transitioning from reactive to proactive service by leveraging remote monitoring technologies Chris La Fratta Director, Global Services Engineering Programs Agenda • Philips Healthcare • Customer Insights • • • • Remote Service at Philips Healthcare Proactive Remote Services Value-Added Services Summary 2 Philips Simply focused on health and well-being Depth and reach of Philips Healthcare What we do. Where we are. The current reality in services 5 Reactive service model Tier 1 Tier 2 Customer Focused / Basic Product Knowledge Technical Experts / Application Specialists Incoming customer call Route to Tier 2 support Remote fix Call closure Failure analysis Dispatch engineer 5-15 min €20/call 30-180 min €50/call Field Service Engineer onsite support (“First trip” resolution) 4-8 hours €500/call 6 Philips Remote Services implementation Facts and figures >7,500 healthcare facility connections Remote fix & diagnosis IPsec VPN & SSL based on industry best practice Real-time monitoring & software updates ISO 27001 Certified >45,000 device connections Faster speed of service and lower costs through remote services 7 Proactive Monitoring Condition-based, system-generated alerts What • Monitor critical system parameters in real time • Create automatic notifications from system-generated alerts • Address system deviations proactively and preempt failures Why • Avoid system downtime and customer disruption • Improve workforce and spare parts planning 8 Proactive SW updates Automatic distribution of SW updates, patches and anti-virus files ERP What • Schedule and push SW updates automatically • Maintain SW revision records systematically through ERP system integration Why • Minimize system downtime; updates can be performed off hours • Maintain latest system SW revisions for increased performance, compliance, & security • Reduce travel and workload for internal field engineers 9 Post-monitoring trending & analysis Analyzing system performance for patterns and prediction DB What • Analyze system performance over time and across installed base • Identify system or usage patterns preceding failures • Develop predictive algorithms Why • Avoid system downtime and customer disruption • Schedule and plan service/parts replacement with advanced notice • Improve product design/reliability 10 Value-added service opportunities Usage-based billing, consulting and opportunity mining What • Create automatic customer invoices based on real time device usage • Incorporate usage information into preventative maintenance strategy • Identify sales opportunities based on real time device usage data Why • Enable usage-based selling & workflow consulting • Improve customer intimacy and partnerships 11 Summary • Customers value speed of service and planned maintenance • Remote services facilitate faster break-fix service • Remote diagnosis and remote fix • Proactive remote services minimize customer disruptions • Proactive monitoring/alerting • Proactive SW updates • Post-monitoring trending and analysis • Remote services provide a foundation for value-added services • Usage-based billing • Work-flow consulting 12