Method and system for using a component business model to transform warranty claims processing in the automotive industry

Abstract

A method, system and service for using a component business model to transform a business process. The invention uses a component business model of a business to prioritize business changes affecting key performance indicators for the business process, defines an information technology architecture to support the business changes, and specifies a roadmap for implementing the supporting information technology architecture. In a particular application of the invention to the automobile manufacturing business, the business process is the warranty claims process, and a length of time to process a warranty claim is a key performance indicator.

Description

[0001] This invention claims priority from U.S. Provisional Patent Application Ser. No. 60 / 701,632 entitled “Automotive Warranty Component Business Model (CBM)” and is related to commonly owned patent application Ser. No. 11 / 176,371 for “SYSTEM AND METHOD FOR ALIGNMENT OF AN ENTERPRISE TO A COMPONENT BUSINESS MODEL”, both of which are incorporated by reference herein.BACKGROUND OF THE INVENTION [0002] 1. Field of the Invention [0003] The present invention generally relates to component based business models and, more particularly, to using a component business model as a basis for developing a service, system and method for an improved automotive warranty claims process. [0004] 2. Background Description [0005] Across the automotive industry escalating warranty costs are consuming significant revenue from manufacturers and suppliers alike. In North America, the automotive industry spends nearly 3% of its revenue on warranty claims, totaling nearly $8 Billion in 2003. Further, warrant...

AI Technical Summary

Benefits of technology

[0011] In a further aspect of the method, the step of using a component business model of a business to prioritize business changes further comprises using a component business model to prioritize components of the business, identifying pain points in the business process, mapping the business process to the component business model, using the identified pain points and the mapped component business model to identify opportunities to improve the business process, the identified opportunities being opportunities to make business changes in the components, and prioritizing the identified opportunities in terms of impact on the key performance indicators and ease of implementation.

Problems solved by technology

Across the automotive industry escalating warranty costs are consuming significant revenue from manufacturers and suppliers alike.

Further, warranty costs per vehicle are rising, in part because of an increasing percentage of in-vehicle software and electronics and greater complexity associated with increased reliance upon systems and modules rather than components.

These solutions do not take into consideration the impact of warranty claims on all parts of the organization (including product design, development, build, sales and service).

Warranty issues ultimately affect almost all major parts of the automotive business, and if not monitored, managed and addressed appropriately, result in significant impact to the bottom line.

A primary factor that influences overall warranty costs is the length of time from initial problem report to root cause identification to corrective action.

Warranty claim resolution under the prior art typically takes more than 160 days.

Most automotive companies are painfully aware of these constraints but continue to struggle with warranty administration hurdles that constrain information sharing among OEMs and suppliers and delay problem diagnosis.

Automotive companies are often unsure where to start their transformation effort, which organization is accountable and which warranty administration changes will have the most impact on their businesses.

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