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01/25/07 - USPTO Class 717 |  23 views | #20070022410 | Prev - Next | About this Page  717 rss/xml feed  monitor keywords

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

USPTO Application #: 20070022410
Title: 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. (end of abstract)



Agent: Whitham, Curtis & Christofferson, P.C. - Reston, VA, US
Inventors: Linda Barbara Ban, Penny Olson Koppinger, Benjamin Thomas Stanley
USPTO Applicaton #: 20070022410 - Class: 717136000 (USPTO)

Related Patent Categories: Data Processing: Software Development, Installation, And Management, Software Program Development Tool (e.g., Integrated Case Tool Or Stand-alone Development Tool), Translation Of Code

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


The Patent Description & Claims data below is from USPTO Patent Application 20070022410, Method and system for using a component business model to transform warranty claims processing in the automotive industry.

Brief Patent Description - Full Patent Description - Patent Application Claims
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[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, 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.

[0006] Original equipment manufacturers (OEMs) in the automotive industry have developed point solutions to address certain issues. New call centers have been set up; systems to track claims have been implemented; new reports have been developed to identify problems and issues that have already surfaced. 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.

[0007] 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. Because faster resolution results in fewer claims for a given problem and lower overall warranty costs, cycle time improvement represents a major financial opportunity for automotive companies.

[0008] 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.

[0009] What is needed is a methodology that enables an automotive company to take a strategic, enterprise-wide view of their organization to address warranty challenges.

SUMMARY OF THE INVENTION

[0010] An aspect of the invention is a method for using a component business model to transform a business process. The method 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.

[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.

[0012] In yet another aspect of the method, the step of defining an information technology architecture to support the business changes further comprises defining a baseline solution architecture view, using the component business model to identify information technology shortfalls, mapping the pain points to the baseline solution architecture view, identifying business requirements for eliminating the pain points, identifying information technology capabilities required to support elimination of the pain points, and defining a target solution architecture view using the identified business requirements and the required supporting information technology capabilities.

[0013] In another aspect of the method, the step of using a component business model to prioritize components of the business further comprises developing a view of the component business model that indicates whether a given component is strategic, or is to be operated at competitive parity, or is to be operated at a basic level, and developing a view of the component business model that shows an impact of a given component on the key performance indicators.

[0014] It is also an aspect of the method for the components to be comprised of activities and for the identified opportunities to be opportunities to make business changes in the activities. In a further aspect of the method, the business process involves collaboration with dealers and suppliers. In another aspect of the method, the business is 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.

BRIEF DESCRIPTION OF THE DRAWINGS

[0015] The foregoing and other objects, aspects and advantages will be better understood from the following detailed description of a preferred embodiment of the invention with reference to the drawings, in which:

[0016] FIG. 1A is a conceptual graph showing the change in claim processing time between the current state and a target future state of warranty claim processing; FIG. 1B provides a block diagram showing detail for the overall claims processing categories shown in FIG. 1A.

[0017] FIG. 2A is a flow chart showing the current claims administration process in the automotive industry; FIG. 2B highlights the pain points during execution of this process; FIG. 2C highlights key points related to the capabilities of information technology (IT); FIG. 2D highlights the business capabilities required to eliminate the pain points.

[0018] FIG. 3 is a diagram showing a component business model (CBM) map of the automotive manufacturer.

[0019] FIG. 4A is a sequential layout of the claims administration process steps shown in FIG. 2A arrayed under the components shown in FIG. 3; FIG. 4B is a mapping of the claims administration process steps shown in FIG. 4A onto the component business model shown in FIG. 3.

[0020] FIG. 5A is a schematic linking the automotive CBM map of FIG. 3 to overlays upon that map showing strategic, financial, transformational and solution views overlaid upon that map; FIGS. 5B, 5C, 5D and 5E, respectively show the strategic view, the financial view, the transformational view and the solution view overlays.

[0021] FIG. 6 is a chart showing a further level of analysis for two components with respect to the four views shown in FIGS. 5B through 5D.

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