MCA Solutions' Founders Emphasize the Value of the Aftermarket In the Harvard Business Review; MCA Innovators Map Out Key Steps to After-Sales Service, Support and Success

Business Wire, May 9, 2006

PHILADELPHIA -- MCA Solutions' co-founders, Dr. Morris Cohen and Dr. Vipul Agrawal, are driving new innovation in after-market service and support, sharing their research and analysis in an article called "Winning in the Aftermarket," featured in this month's issue of the Harvard Business Review.

In the article, Dr. Cohen, Dr. Agrawal and their colleague, Dr. Narendra Agrawal, highlight the importance of after-sales service - both in terms of driving customer loyalty, and profits. According to a 2002 AMR Research report, businesses earn 45 percent of gross profits from services. (1)

"More companies are realizing the financial benefits associated with improving aftermarket services - which is quickly moving the aftermarket from an "afterthought" to a major priority," said Dr. Cohen, chairman of MCA Solutions. "Although few executives realize it, after-sales support is the longest-lasting source of revenue to sellers and requires the smallest investment."

Making Money in the Aftermarket

In the Harvard Business Review article, the three authors discuss the inherent differences between the traditional supply chain and the service supply chain, and identify the "Six Steps for Managing Service Networks":

1. Identify which products to cover. Support all, some, complementary or competing products.

2. Create a portfolio of service products. Position service products according to response times and prices.

3. Select business models to support service products. Use different models for different products and life cycle stages.

4. Modify after-sales organizational structures. Provide visibility, incentives and focus for services.

5. Design and manage an after-sales services supply chain. Decide location of resources, prioritize resource utilization and plan for contingencies.

6. Monitor performance continuously. Evaluate against benchmarks and customer feedback.

As the MCA executives note in the HBR article, "Being on par with your rivals in performance, price and quality gets you into the game; after-sales services can win you the game."

Industry leaders like Cisco Systems have been shining the spotlight on after-sales services for years now, leveraging MCA's Service Planning and Optimization (SPO(TM)) software to effectively meet service demands, reduce spare parts inventory (by 21 percent) and significantly improve customer satisfaction. Other major companies, including KLA-Tencor, Boeing and Rockwell Collins are leading their industries, tapping MCA to dramatically improve after-sales support.

MCA Solutions' Service Planning and Optimization software has consistently been recognized as the leading service parts planning solution by well-known industry influencers. Just last month, the company was deemed "The Apple of the SaaS Market" by Technology Evaluation Centers, marking the fourth time in less than a year that MCA has received highly-positive industry recognition.

For more information on MCA Solutions, please visit www.mcasolutions.com. For a copy of the complete article, please visit http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/ item_detail.jhtml?id=R0605H. (Due to the length of this URL, it may be necessary to copy and paste it into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)

About MCA Solutions

MCA Solutions' Service Planning and Optimization (SPO(TM)) software suite helps Fortune 500 companies in aerospace and defense, high-tech and capital equipment transform their service supply chains into bottom-line business drivers, by reducing inventory, lowering support costs and improving service levels to maximize customer satisfaction. MCA Solutions is a privately held company headquartered in Philadelphia, and can be reached at www.mcasolutions.com or (215) 717-2180.

MCA Solutions, Service Planning and Optimization Suite and SPO are trademarks of MCA Solutions, Inc.

(1)AMR Research Report, August, 2002