Product service management market to near $2 billion by 2008
The Product Service Management (PSM) market, which includes enterprise solutions for product service organizations, is expected to more than triple in size from $650 million in 2002 to almost $2 billion by the end of 2007. This represents a compound annual growth Rate (CAGR) of almost 25% during the forecast period, according to a new study by ARC Advisory Group.
Dedham, MA -The Product Service Management (PSM) market, which includes enterprise solutions for product service organizations, is expected to more than triple in size from $650 million in 2002 to almost $2 billion by the end of 2007. This represents a compound annual growth Rate (CAGR) of almost 25% during the forecast period, according to a new study by ARC Advisory Group.
”With worldwide economies struggling, manufacturers are facing increasingly challenging markets for their products,” according to Sid Snitkin, ARC’s vp and author of ”Product Service Management Software & Services Worldwide Outlook.” After-market service and parts is rapidly becoming the focus for both revenue growth and for gaining competitive advantage in product sales. Technology is vital to these strategies, and companies are recognizing that their prior lack of investment in this sector has left them unable to effectively execute expanded aftermarket programs.
After-sales service is sold in a multitude of ways such as extended warranties, guaranteed response service agreements, and on an as-needed, pay-per-call basis. After-sales service also covers a broad range of activities including installation support, support for product use and maintenance, spare parts, field service, and repair center/depot management. Managing these processes is complex and requires integrating technology from several enterprise software arenas including:
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP)
Product Lifecycle Management (PLM)
Supply Chain Management (SCM)
Supply Chain Execution (SCE)
Enterprise Asset Management (EAM)
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