By Yuji Nakasu

Over the past generation we have watched what set manufacturers apart from their competition change. Outstanding product quality has gone from a key differentiator for manufacturers to the price of admission. Low product cost, once an advantage, is now assumed, especially as global competition, lean manufacturing, and other factors have forced manufacturers to lower their prices. Now the essential difference between one manufacturer and another lies in the overall value they offer their customers — particularly through services.

'Customer service' is a term that has taken on many meanings in recent years. While some might consider service to be the exclusive domain of Customer Relationship Management solutions, the reality for manufacturers is different. The most critical aspect of service is not winning new customers, but rather taking care of the ones you already have. In the context of manufacturing — and this newsletter — customer service means post-sale service: product installation, field service, web-based self-service, and more.

By nature, most manufacturers have focused on generating revenues by selling products. Now smart manufacturers have discovered that, over the course of a product's lifespan, dramatically more revenue can be generated by servicing a product than from its original sale — up to nine times as much revenue. Manufacturers are also leveraging the Internet to provide their customers with self-service opportunities — placing orders, checking status, and more — which both lowers your costs and increases customer satisfaction.

More and more, manufacturers are differentiating themselves by providing excellent customer service. Those that succeed are finding that service provides a stable revenue stream through good times and bad and creates win-win opportunities for them and their customers.

In this issue of The Extended Enterprise we take a look at this fascinating and pivotal topic, beginning with our brand new whitepaper "The New Power of Post-Sales Service" and also in our feature article on customer self-service. glovia.com service-related applications are highlighted in our Solutions section and an excellent article on business relationships by Fujitsu Consulting VP Ray McKenzie is in our Fujitsu column.

We also have another installment from our Career Coach, which had a very popular debut in the last issue, and I encourage you to review the other material in the newsletter including the description of our new Plant Maintenance module; a notice of upcoming customer events in Europe and the U.K.; a mark-the-date reminder for our 2005 User Group in California; and as always our latest media coverage.

As ever, if you have any questions about anything in our newsletter — or about Glovia and extended enterprise solutions in general — please let us know. Likewise, if there is anything you would like to see covered in our upcoming 2005 calendar for The Extended Enterprise, please write to us at extended-enterprise@glovia.com.

The recent good news about manufacturing production in the US is very encouraging and we continue to be most impressed by our customers' resourcefulness in general and especially with glovia.com. I hope you had a good summer and will let us know how we can help make the rest of the year as successful as possible.

Best Regards,

Yuji Nakasu
President and CEO
Glovia International, Inc.