Service Contract Renewal Learning System
- Publication number: 20190012677
- Filed: Jul 6, 2017
- Publication Date: Jan 10, 2019
- Application Number: 15/642,853
Machine and equipment assets, generally, are engineered to perform particular tasks as part of a business process. For example, assets can include, among other things and without limitation, industrial manufacturing equipment on a production line, drilling equipment for use in mining operations, wind turbines, solar panels, etc., which generate electricity, transportation vehicles such as trains, automobiles, aircraft, and the like. As another example, assets may include healthcare machines and devices that aid in diagnosing patients such as imaging systems (e.g., X-ray or MM systems), monitoring equipment, and the like. The design and implementation of these assets often take into account both the physics of the task at hand, as well as the environment in which such assets are configured to operate.
Low-level software and hardware-based controllers have long been used to drive machine and equipment assets. However, the rise of inexpensive cloud computing, increasing sensor capabilities, and decreasing sensor costs, as well as the proliferation of mobile technologies have created opportunities for creating novel industrial and healthcare based assets which are capable of transmitting data that can then be distributed throughout a network. As a consequence, there are new opportunities to enhance the business value of some assets, data associated with the assets, and asset manufacturers through the use of novel industrial-focused hardware and software.
A service contract (e.g., also referred to as an extended warranty, service agreement, maintenance agreement, etc.) is a business agreement offered to consumers in addition to a standard warranty provided on newly manufactured assets. A service contract is often an agreement between the provider of the contract and the consumer covering maintenance and servicing of the machine or equipment over a specified period of time. In some cases, the service contract may be provided by a third party service provider, a retailer of the asset, a manufacturer of the asset, and the like. A service contract typically costs the consumer a percentage of the asset’s purchase price and covers most maintenance and servicing that can occur with respect to the asset and its parts.
For manufacturers and machinery industries, service contracts contribute to a significant portion of the annual revenue. For example, service contracts can account for 25% to 50% of a business’s revenue. Ineffective control and management of supplier contracts costs businesses in the United States alone, approximately $150 billion per year in missed savings opportunities. For example, even a minor delay (e.g., 2-3 weeks) in contract renewals may result in a significant loss of revenue. Accordingly, what is needed is an improved tool for identifying service contract renewal opportunities and facilitating renewal of the service contract in instances where there is a possibility of improvement.
Additional links –