Unlocking Sustainable Profitability in Service Businesses: The Power of Avrogan Service Excellence in Service Contract Management

Contract Management

In an era where service-oriented businesses are emerging as the cornerstones of numerous industries, the importance of efficient service contract management cannot be overstated. Such service contracts serve as the backbone of many OEMs (Original Equipment Manufacturers) and their businesses, reflecting the complexities of their operations and the versatility of their offerings. But a challenge remains: how can service businesses sustainably boost their profitability using advanced service contracts?

Advanced Service Contracts: Beyond the Rigid Molds

In the absence of a reliable service contract management solution, many OEMs have relied on Configure-Price-Quote (CPQ) tools that they normally use for their product offerings, also for their service businesses. These tools, originally conceptualized for manufacturers, often carry an inherent rigidity. They prioritize concrete and tangible assets, like machines and products, thus often sidelining the intangible assets, like human resources and performance, which are crucial to the service business.

Such a limited view, like trying to fit a square peg into a round hole, has been a persistent thorn for their service businesses. They’ve struggled with tools that view services as mere appendages, rather than the essence of their operation. On the contrary, advanced service contract management solutions, like Avrogan , are a beacon of hope in this convoluted landscape. 

Avrogan Service Excellence™(ASE) focuses on a service-centric model. It recognizes that in today’s economic environment, services aren’t just add-ons but often form the core around which modern businesses revolve. Such a shift in perspective allows ASE to accommodate a plethora of assets, both tangible and intangible, offering unprecedented flexibility. Designed with a keen understanding of the needs and challenges of service businesses, ASE is not another CPQ or contract management solution; it’s a paradigm shift in how OEMs shall design, configure, price, and offer their services.

With Avrogan Service Excellence™, businesses can:

  • Adapt and Configure: Unlike CPQ tools that confine services to rigid templates, ASE empowers businesses to mold service contracts that truly mirror their unique offerings. This encompasses everything from basic maintenance services to sophisticated performance- and outcome-based ones, which may or may not be combined with the sale or rent of machines or other types of assets.
  • Financial Vigilance: Profitability is more than just revenue; it’s about adeptly managing costs and optimizing margins. With ASE’s intricate financial tools, businesses can keep a close watch on their profitability metrics. The platform offers a pricing engine for strategic pricing logics, advanced simulation tools to forecast the profitability of a service even years into the future, and mechanisms to proactively intervene when margins appear threatened.
  • Real-time Monitoring: Ensuring that service delivery aligns with contractual obligations is paramount. ASE’s real-time monitoring module, complete with functionalities that can integrate with third-party solutions using advanced APIs, allows businesses to maintain a pulse on their services, swiftly identifying and addressing any discrepancies as they emerge.

A Step Towards Sustainability

For service businesses of OEMs, sustainable profitability is a function of effective service contract management. A well-configured, strategically priced, futuristically monitored, and flexible service contract can drive efficiencies, minimize resource wastage, and optimize revenue streams. Conversely, a poorly configured service contract can bleed resources, pile-up costs, eat-up margins, erode clients trusts, and dent profitability.

ASE has been the keystone for numerous OEMs in transitioning from the latter to the former. With its service-first perspective, it not only streamlines the service contract management process but also accentuates the value of services, making them pivotal profitability drivers. 

Avrogan’s journey with ASE, initiated in the vibrant heart of Stockholm, has been nothing short of transformative. By offering businesses a lens that truly appreciates the multifaceted nature of services, Avrogan is redefining the landscape of service contract management. Avrogan team are fueled by an unwavering mission to empower businesses, irrespective of their industry or scale, to harness their service contracts as robust tools for sustainable profitability. Avrogan team believes that services, with their inherent flexibility and adaptability, can be significant growth catalysts if managed efficiently. With ASE, Avrogan offers businesses the tools to realize this potential.

Promoting Service Excellence Worldwide:

In a world where services are increasingly being recognized for their intrinsic value, Avrogan Service Excellence™ stands out as a pioneering solution that recognizes and elevates this value. By facilitating robust, flexible, and efficient service contract management, ASE is paving the way for businesses to unlock sustainable profitability.

Will Fastiggi
Will Fastiggi

Originally from England, Will is an Upper Primary Coordinator now living in Brazil. He is passionate about making the most of technology to enrich the education of students.

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